Annual Report 2024
Solomon Lew
Chairman
John Bryce
Interim CEO (Retail)
and Just Group CFO
Chairman’s Report
On behalf of the Premier
Investments Limited
(“Premier”) Board of
Directors, I am pleased to
present the 2024 Annual
Report for the financial
year ended 27 July 2024
(“FY24”).
Premier has once again delivered a strong result, reaffirming the Group’s resilience
in challenging times. Premier has grown significantly over the past six years –
from a business delivering a Net Profit after Tax (“NPAT”) in pre-COVID FY19 of
$106.8 million, to delivering an NPAT of $257.9 million in FY24, representing an
increase of over 140%. Under the leadership of your Board, Premier has maintained
a robust balance sheet and have rewarded shareholders with record fully franked
ordinary dividends in FY24 totalling 133 cents per share, an increase of 16.67% on
the prior year ordinary dividends. Over the past 5 years, Premier shareholders have
been rewarded with fully franked ordinary and special dividends totalling $5.38 a
share – that is over $850 million in fully franked dividends distributed to our
shareholders over the past 5 years.
Full year ordinary and special dividends per share (fully franked)
Ordinary
Special
0
30
60
90
120
150
FY22
FY23
FY24
FY21
FY20
70
80
100
114
25
16
133
Premier Investments Limited 1
Premier Retail – strong performance & operational
efficiencies
Premier Retail, our wholly owned retail segment, contributed
Earnings Before Interest and Tax (“EBIT”) of $325.91 million,
a decrease of 8.6% on a record FY23 and up 94.8% on
‘pre-COVID’ FY19.
Premier Retail comprises of our seven iconic brands –
Peter Alexander, Smiggle, Just Jeans, Jay Jays, Portmans,
Dotti and Jacqui E. Our omni-channel customer experience
allows for a seamless shopping experience, supporting
customers in whichever way they choose to engage with us.
Be it through our over 1,100 bricks and mortar stores across
six countries, or online via our websites across four countries
or through our wholesale partnership arrangements with
international ‘best in class’ retail partners.
The group’s strategy is always anchored on delivering value
for customers in our products and shopping experience, while
also maintaining a relentless focus on inventory productivity
and operational efficiencies. For FY24, Premier Retail reported
global sales of $1,595.3 billion, a decrease of 2.3% on a
record FY23. Pleasingly, operational efficiencies largely offset
inflationary pressures, with cost of doing business for the
Retail segment up only 1.7% on FY23. Gross margins for
the year increased 35 bps to 62.6%.
Peter Alexander – powerful designer brand
delivering record sales of over half a billion
Peter Alexander is a unique design-led brand that continues
to excite our customers and deliver year on year record
results for our shareholders.
The brand has cemented its position as one of the leading
lifestyle and gifting brands in Australia and New Zealand for
the entire family, delivering full year sales surpassing half a
billion dollars for the first year, with a record $508.6 million
in sales, up 6.2% on FY23 and up 105.3% on FY19.
The record sales result was driven by exceptional performance
across all product categories and channels. Both retail store
and online channels delivered strong growth during the year,
with the brand’s investment in expanding the outlet store
channel delivering a broader customer base. During FY24,
nine new stores were opened, and nine stores were relocated
or expanded to showcase the brand’s expanded
product offering.
We are delighted to confirm plans to launch the
Peter Alexander brand in the United Kingdom in early
FY25, with the first three UK stores and dedicated UK
website confirmed to open by November 2024.
Smiggle – a highly efficient business primed
for growth
Smiggle is the ultimate destination for school essentials as
well as innovative and fun products for young people. In a
challenging discretionary retail environment, with the Smiggle
consumer particularly exposed to increased cost of living
pressures in all global markets the brand delivered FY24 global
sales of $296.0 million whilst trading from 43 fewer stores at
July 2024 compared to July 2019.
Smiggle continues to have successful collaborations with
major international studios including Disney, and sporting
collaborations with the Australian Football League (AFL),
to name a few.
The brand remains committed to providing customers with
innovative and quality products and continues to explore
growth opportunities in existing markets and through the
evolving wholesale channel.
Apparel brands – positive momentum
The Apparel Brands, consisting of Just Jeans, Jay Jays,
Portmans, Dotti and Jacqui-E, delivered collective sales of
$790.7 million during FY24, down 6.4% on a record FY23.
Continuous improvement in product, sourcing and margin
delivered improved sales and margin momentum during
the second half of FY24.
Premier Retail is excited to announce the launch of a new
customer loyalty program across all five Apparel Brands in
October 2024. The new five-brand loyalty program will build
brand engagement and further encourage cross shopping
between the Apparel Brands.
The Apparel Brands will commence unveiling new and
improved store design formats during FY25, providing
customers with an enhanced in-store shopping experience.
Just Jeans and Jacqui-E will unveil its new store designs in
November 2024, while progress continues on new store
design formats for Dotti, Portmans and Jay Jays.
Chairman’s Report continued
1 Refer to page 11 of the Directors Report for a reconciliation of Premier Retail EBIT and statutory reported profit before tax for the Retail Segment.
2
Annual Report 2024
Strong omni-channel offering
Each Premier Retail brand seeks to delight customers in
whichever way they choose to shop, and to support this we
continue to invest in people, technology and marketing to
improve our world-class platforms and customer experiences.
The business delivered online sales of $315.3 million in FY24,
representing 19.8% of total Group sales for the year. Sales in
the online channel are delivered at a significantly higher EBIT
margin than the retail store channel.
Significantly for each of the seven brands, the most viewed
window and the largest store is the brand’s online channel.
Our customers also value the Group’s more than 1,100 bricks
and mortar stores in six countries. With the appropriate
landlord support, opportunities exist to refresh, upgrade and
or expand stores across all of Premier’s brands over the next
three years as we simultaneously continue to invest in our
online potential.
Robust balance sheet
Premier maintains a strong balance sheet with cash on
hand of $409.5 million at the end of FY24.
At the end of FY24, Premier’s 25.5% equity accounted
investment in Breville Group Limited had a market value
of $981.4 million. Premier received a total of $11.5 million
in fully franked dividends from Breville during the year.
At the end of FY24, Premier’s 31.4% equity accounted
investment in Myer Holdings Limited had a market value
of $215.3 million. Premier received a total of $9.5 million
in fully franked dividends from Myer during the year.
Strategic review update
In August 2023, the Premier Board embarked on a
strategic review of Premier Retail. The Group’s strategic
review has continued to progress under the leadership
of the Premier Board, supported by external advisors,
UBS and ABL, and an in-house lead project team. The last
12 months have highlighted significant future opportunities
for each of Peter Alexander, Smiggle and the Apparel Brands.
Following Myer Holdings Limited’s proposal received in
June 2024 to explore a potential combination of Myer with
Premier’s Apparel Brands business, Premier has prioritised
exploring this opportunity, and the value which might be
created for Premier shareholders. The Board’s focus in
assessing the proposal or any other strategic review outcome
will be on creating shareholder value, whilst maintaining the
potential and integrity of each of the businesses. Any potential
transaction with Myer, or any demerger of Peter Alexander
and/or Smiggle will be subject to further review and final
Board approval, as well as regulatory and shareholder
approval. Further information will be released when
appropriate, as the work being undertaken develops.
Acknowledgments
Premier’s sustained, strong results are an outcome of the
Board and the leadership team’s careful planning, execution
and a continuous pursuit for excellence in all that we do.
On a personal note, I would like to thank my remarkable
fellow Directors for their valuable contribution, insights
and counsel throughout the year.
Our outstanding results would not be possible without our
dedicated global teams. Our exceptional teams deliver day
after day for our customers, our communities, and our
shareholders. On behalf of all shareholders, I would like
to say thank you to all of our global team members.
I encourage all of our shareholders to participate in the
company’s Annual General Meeting on 13 December 2024
for a further review on the Group’s performance and
strategies for the future. I look forward to seeing you there.
Solomon Lew
Chairman and
Non-Executive Director
Premier Investments Limited 3
Sally Herman
Non-Executive Director
David M. Crean
Deputy Chairman
and Non-Executive Director
Timothy Antonie
Non-Executive Director
Henry D. Lanzer AM
Non-Executive Director
Sylvia Falzon
Non-Executive Director
The Directors
Solomon Lew
Chairman and
Non-Executive Director
Andrea Weiss
Non-Executive Director
Michael R.I. McLeod
Non-Executive Director
Terrence McCartney
Non-Executive Director
4
Annual Report 2024
Brand Performance Premier Retail
Smiggle, delivered global sales of $296.0 million in FY24, whilst
trading as a more efficient business with 309 stores trading as
at July 2024, including 6 new stores opened towards the end of
2H24. Smiggle is a global brand with a presence in over 20 countries,
operating through its own proprietary stores, as well as through
wholesale partnerships. The brand remains committed to providing
customers with innovative, quality and aspirational products that
stretch the age demographic from 3 years old with the Junior ranges,
to 14+ years old, with older designs.
Peter Alexander, is a powerful designer brand and delivered a
record sales result for the year of $508.6 million, up 6.2% on FY23.
Peter Alexander’s unique design led product continues to excite
customers. The creative direction of the marketing program positions
the brand as one of the leading lifestyle and gifting brands catering
for the entire family in Australia and New Zealand. The record sales
result was driven by exceptional performance across all product
categories – Womenswear; Menswear; Children’s wear, Plus-size
and Gifting.
Portmans delivered sales of $145.2 million
in FY24. Portmans has an extremely strong
and distinctive market position and is well
positioned for future growth, particularly
through strong growth in tailoring and desk
to dinner dressing. Plans are underway for
new and improved store design formats.
Jay Jays delivered sales of $164.3 million in
FY24, whilst trading from 5 fewer stores at
July 2024, compared to July 2023. Jay Jays
has a strong, distinctive and competitive
market position and is well positioned for
future growth, with increased investment
in social media marketing to build brand
engagement, improved store experiences,
and the opportunity to unlock future
growth through new and improved
store design formats.
Dotti delivered sales of $111.8 million in
FY24. New volume trend programs and
seasonally relevant product has resonated
well with customers, presenting further
opportunities for growth. Dotti has a strong,
distinctive and competitive market position
and is well positioned for future growth.
Jacqui E delivered sales of $75.6 million
in FY24. Jacqui E has an extremely strong
and distinctive market position and is well
positioned for future growth. The brand
has a loyal customer base who trust the
brand for both work and occasion dressing,
and customers have responded favourably
to new, seasonally relevant, high quality
volume programs, presenting further
growth potential in the future.
Apparel Brands
Our Apparel Brands (consisting of
Just Jeans, Jay Jays, Portmans, Dotti and
Jacqui E) delivered sales of $790.7 million
in FY24. Continuous improvement in
product ranges and sourcing delivered
improvement in gross margins during
the second half of the year. The Apparel
Brands operate across 719 retail stores
in Australia and New Zealand, as well as
online. The trusted portfolio of apparel
brands is well positioned for
future growth:
• New loyalty program available to
customers in Australia and New
Zealand across all five apparel brands
set to launch in October 2024
• Optimising the store portfolio with new
and improved store design formats to
be unveiled in 1H25
Just Jeans, the Group’s iconic original
brand, delivered sales of $293.8 million
in FY24. With new ranges being well
received by customers, and a new store
design being unveiled in November 2024,
the brand is uniquely positioned for future
growth as a destination for denim.
Premier Investments Limited 5
Powerful designer brand delivering record results
• Record FY24 sales of $508.6 million, up 6.2% on FY23
• Sales surpassing half a billion dollars in FY24
• Peter Alexander’s unique design led product continues to
excite customers. The brand has positioned itself as one of
the leading lifestyle and gifting brands for the entire family
throughout Australia and New Zealand
• Peter Alexander’s record sales result was driven by
exceptional performance across all channels and all product
categories: Womens, Mens, Childrens, Plus-Size and Gift
• 9 new stores were opened during FY24, and 9 existing
stores were relocated or expanded during the year,
significantly improving the customer experience
• The Brand has a runway for further growth:
– 4 new stores and 4 relocations/expansions into larger
format stores confirmed to open in 1H25
– over 20 further opportunities have been identified for
both new and/or larger format stores in the near term
to better showcase the wider product offering that has
been developed in recent years
– Peter Alexander launching in the United Kingdom,
with 3 stores and a UK website planned to open by
November 2024 – ahead of the critical Christmas
gifting trade period
– In the short-term, opportunities have been identified
for up to 10 new stores in the UK as part of the initial
launch plans
Peter Alexander
Peter Alexander Sales $’M
FY19
247.8
FY20
288.2
FY21
384.6
FY22
428.5
FY23
478.9
FY24
508.6
0
100
200
300
400
500
600
6
Annual Report 2024
Global brand with presence in over 20 countries
• Smiggle delivered global sales of $296.0 million in FY24
• Smiggle is a unique global brand and the ultimate
children’s destination for school essentials. From backpacks,
water bottles and lunchboxes to pens and pencil cases,
Smiggle is the original creator of all things fun, colourful
and on trend
• The brand’s sales result has been delivered whilst trading
as a more efficient business with 309 stores trading at
July 2024, including 6 newly opened stores
• The brand continues to have successful global
collaborations across leading film studios and sporting
codes that are aligned to Smiggle’s core customers,
values and philosophy
• Smiggle has significant runway for further growth
through its proprietary stores, as well as its evolving
wholesale model:
– 10+ opportunities have been identified for new
stores in the near term in existing markets
– Wholesale model continues to evolve
• Successful partnership with Smiggle’s wholesale
partner in the Middle East continues to deliver
through the opening of 16 standalone stores
during FY24, as well as the partner’s current
successful 30+ ‘store-in-store’ arrangements
• Partnership with an existing wholesale partner
in Indonesia to open over 100 freestanding
stores within the next 10 years, in addition
to the partner’s current successful 140+
“store‑in‑store’ arrangements
Smiggle
FY19
FY20
FY21
FY22
FY23
FY24
0
50
100
150
200
250
300
350
250
275
300
325
350
306.5
352
309
256.3
209.6
261.2
319.8
296.0
Smiggle Sales ($’M)
Smiggle Stores
Smiggle Global Sales $’M
FY20, FY21 & FY22 impacted by COVID lockdowns
and school closures
Premier Investments Limited 7
Omni-channel
Online Sales Growth
• Premier’s strategy is to delight customers however they
choose to engage and shop, whether this is in-store
or online
• Online sales of $315.3 million, contributing 19.8% of total
FY24 sales
• Online channel delivering compounding annual growth
of 16.3% over the past 5 years
• For each of the seven brands the most viewed window
and the largest store is the brand’s online channel
• The Online channel continues to deliver significantly
higher EBIT margin than the retail store network providing
significant operating leverage for future growth
• Customers continue to value the Group’s more than
1,160 bricks and mortar stores across six countries.
With the appropriate landlord support, opportunities
exist for new stores and to refresh, upgrade and/or
expand existing stores across all brands
Delighting customers however they choose to shop
Online Sales ($’M)
FY20, FY21 & FY22 impacted by COVID lockdowns
Online sales as % of Total Sales
Online Sales CAGR +16.3% over 5 years
0
50
100
150
200
250
300
350
350
400
FY19
FY20
FY21
FY22
FY23
FY24
148.2
220.5
297.5
340.1
324.7
315.3
11.7%
18.1%
20.9%
22.7%
19.8%
19.8%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
8
Annual Report 2024
Responsible Business Practices Build
Trust & Deepen Our Relationships
We are proud to share highlights from our FY24 work program.
People
Engaging our
10,000+ global team
We aim to create an environment
that focuses on engagement –
ensuring our people strive for
excellence while prioritising
their wellbeing
Building retail careers
We are proud to internally
promote our team members
across our store network,
support office and DC
Investing in our people
In addition to our existing
learning and development
program, this year we piloted
a new mental health first aid
training initiative
Partners
Ethical Sourcing
Living wage progress
We completed or made progress
on all Living Wage commitments
Grievance helpline
We rolled out the Amader Katha
grievance helpline in all factories
in Bangladesh
Supporting injured workers
We became a signatory
of the Employment Injury
Insurance Scheme
Community
Breast cancer fund raising
We supported the National
Breast Cancer Foundation,
with our team raising over
$39,000 in FY24, and over
$200,000 over the course of
our fundraising partnership
Clothing donation
We donated over 28,000 items
in FY24, including to people in
need, assisting them to find
employment and build a future
with economic security
Supporting vulnerable
children
We continued to provide
Smiggle product donations
to children in need
Planet
Measuring emissions
We started measuring our
primary suppliers' Greenhouse
Gas Emissions
Improving data
We improved the accuracy of
our packaging and waste data
for APCO reporting
Closing the loop
We recycled over 3,500kg
of soft plastic across our
Support Office and Melbourne
distribution centres
Product
Responsible fibre
procurement
We expanded responsible fabric
sourcing in our product ranges,
including 1,700+ metric tonnes
of Better Cotton, and investment
in more traceable viscose sources
Better Cotton
Together with increasing the use
of Better Cotton, we achieved a
successful outcome declaration
result in our Better Cotton
Independent Assessment
Australian Cotton
We have commenced a trial of
Australian Cotton in a range of
Just Jeans' womenswear
Our commitment to ethical and responsible ways of working are
embedded in our operations, supply chain and the communities
in which we operate across the four strategic pillars set out below.
Premier Investments Limited 9
We are committed to unlocking the potential of each of our 10,000+ strong team
members. We also strive to attract and retain top talent that can meet the needs
of our strategy and customers.
Our work program, which forms the basis of our people
strategy, has a specific emphasis on:
• promoting the well-being and engagement of
team members;
• fostering diversity, equality, and inclusion; and
• ensuring health and safety for our team members
and customers
Team Member Wellbeing & Engagement
We continue to connect individual performance with the
goals and values of our Group. We do this by:
• Training & developing our people. In FY24 over
22 programs and 47 modules were available, together
with an expanded Just Development Program for leaders.
• Rewarding our team for excellence, including through
seasonal bonus & incentive opportunities.
• Supporting our people when they encounter challenging
life situations. Our employee assistance program is
accessible to team members in all markets.
• Extending value by recognising the cost-of-living
pressures on our team. We offer discounts for purchasing
in our own stores, as well as for products from selected
third parties (eg. health insurance, gym memberships,
finance & technology products).
Equality & Inclusion
We stand firmly against all forms of discrimination in
the workplace. We take great pride in the robust career
opportunities we provide, particularly for women in the
retail sector.
In FY24, women comprised 91% of our workforce and held
50% of executive leadership roles. One third of the Premier
Board are women.
We remain dedicated to fostering comprehensive diversity
and inclusion across our teams, continually learning from
and engaging with our workforce on diversity initiatives to
ensure our workplace is free from discrimination.
Health & Safety
Our team members have a right to be safe at work. Moreover,
our team has a right to be treated respectfully at all times.
We acknowledge and support recent industry initiatives to
address the rising incidence of abuse and violence towards
retail employees.
Following the two significant & tragic emergency events that
occurred at shopping centres at Bondi and Marion in early
2024, we were able to quickly put support in place for our
team. As a result of those incidents, we have reviewed – and
continue to review – our emergency preparation & response
procedures to ensure our teams are well supported. We are
proud of the way our teams responded to these tragic
incidents. Our heartfelt condolences continue to be extended
to those families impacted by these terrible events.
Those incidents emphasise the need to create a safe
environment for our team, partners and customers. Our teams
monitor, assess, prevent, record and mitigate risks using the
'Just Play it Safe' and 'Safety Eyes' framework. Psychosocial
risk has been a key focus for FY24, with a psychosocial risk
review completed and actions carried out to mitigate
associated risks.
To obtain deeper understandings and insights in respect of
lost time as a result of injury, in FY24 in respect of Australian
team members we implemented a new methodology for
measuring lost time injuries (LTls) and lost time injury
frequency rate (LTIFRs – the number of LTIs per million hours
worked). This change in methodology enables us to better
understand LTis related to muscular stress and manual
handling. While we saw an increase in both measures (8.9%
in LTls and 17.2% in LTIFR), the average amount of time lost
for each claim reduced by 2.2% – meaning our team was able
to return to work quicker than in previous periods.
As a result of this change in methodology, while our
year-on-year data is not directly comparable, we have
observed a general shift in LTis towards muscular stress where
no objects are handled (vs manual handling LTis). This gives us
opportunity to implement the results of our independently
conducted Manual Handling Project (reported on in our FY23
annual report) in hand, to reduce the number of LTls –
regardless of the cause – in future periods.
Other new FY24 initiatives included a pilot program
of Mental Health First Aid training involving selected
Support Office Team Members and our Regional/
Cluster Manager teams, with a view to potentially
expand this training initiative in the future.
People
10
Annual Report 2024
91%
WOMEN TEAM
MEMBERS
50%
WOMEN IN EXECUTIVE
LEADERSHIP ROLES
48.3%
INTERNAL SUCCESSION
FILL RATE
Premier Investments Limited 11
We are committed to upholding the highest human rights standards and
responsible sourcing practices to protect the rights of workers and the
communities from which we source.
Our Ethical Sourcing Program
We partner with product suppliers who work with factories
based in China, Bangladesh, Vietnam, India, Pakistan,
Indonesia and Taiwan. These factories participate in our
Ethical Sourcing program. Our updated program, now in its
fourth year, is monitored through a number of audit &
compliance requirements, as well as regular factory visits
throughout the year by our team. In FY24 we continued our
partnership with LRQA to implement our program and to
further understand Modern Slavery risk in our supply chain.
Our framework approach is one of continuous improvement
and full transparency. Full details of our framework are set out
in our fourth Modern Slavery Statement, which we published
in January 2024 and can be found on our website on the page
'Commitment to Sustainable & Responsible Business Practices'.
Key projects delivered in FY24
Published updated living wage commitments
In FY24 we updated our living wage commitments.
In our update, we shared our progress on our 2022
commitments & detailed our future work program.
Our FY24 achievements include:
• Delivery of updated Responsible Purchasing Practices
training to over 100 product team members
• Increased the usage of open costs on core lines
• Complete rollout of Amader Kotha helpline to all
workers in Bangladesh
• Commenced wage gap analysis in Bangladesh covering
20% of supplier factories
We are committed to transparently reporting on our progress
regarding living wage commitments, whilst we (along with
industry participants) continue to strive to close the gap
between minimum legal wage and a living wage. The full
updated living wage statement can be found on our website.
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Program framework:
from engagement to action
The six core pillars of our Ethical Sourcing Program framework
include work programs in each pillar, informing actions and change.
Partners
12
Annual Report 2024
Grievance Mechanism Rollout
We successfully commenced the FY24 roll out of the
Amader Kotha worker helpline with our factory partners
located in Bangladesh. Amader Kotha translates in English
to "Our Voice", with its mission to provide a trusted
grievance channel for workers in the ready made garment
sector in Bangladesh. The helpline, launched in 2014,
reaches 1.5 million workers and takes an average of
2,248 calls a month.
Our rollout commenced with supplier management teams,
followed by an in-person introduction to the helpline with
factory workers, led by our own Dhaka based team member.
Our Melbourne based Ethical Sourcing & Sustainability
Manager also attended and co-presented at some of the
on-the-ground training sessions in Dhaka, demonstrating
our commitment to invest in our people to bring them closer
to our suppliers and their teams. These sessions gave workers
an understanding of what the helpline is, how issues are
remediated and how they can access the mechanism.
These training sessions covered a total of 3,806 workers
in 13 factories in Bangladesh.
We look forward to providing further insights on grievance
data received in our FY24 Modern Slavery Statement.
Employment Injury Insurance Scheme
In FY24 the Just Group became a signatory of the
Employment Injury Insurance Scheme (EIS) pilot, which is
supporting workers in the Bangladesh ready made garment
industry. An initiative led by the International Labour
Organization (ILO) and GIZ, this pilot scheme offers workers
financial assistance in the instance of a workplace accident.
The aim of the scheme is to ensure workers and their families
are compensated if a workplace injury or fatality was to occur.
As a partner of the scheme, Just Group provided a voluntary
financial contribution to support the important work being
done to expand this project.
We have commenced engagement with the EIS team and
our factory partners in Bangladesh, to deliver an orientation
session for factories, outlining the scheme and how they can
support a successful rollout.
Further work on this project will continue into the FY25
reporting period and initial insights shared in our FY24
Modern Slavery Statement.
Premier Investments Limited 13
Through continued collaboration, we are proud to work alongside a number
of community organisations through financial and in-kind support programs.
Community
Supporting our communities & having a positive impact is important to us. Our FY 24 partnerships included the
following outcomes:
Over $39,000 raised, including through sale of Portmans x NBCF tote bags
The Just Group has raised over $200,000 for Breast Cancer Research since 2016.
28,100 items donated
Providing new wardrobes for over 1,100 people in need. 71,000 items donated since our
partnership began.
New Jacqui E gift bag initiative
Raising funds to enable women to find employment and build a future with economic security.
Over $100,000 raised for the RSPCA through continued Peter Alexander
partnership
With just under $8,000 raised in New Zealand for Paw Justice.
Over $1.4 million raised for the RSPCA since our partnership began over a decade ago, and over
$156,000 for Paw Justice in New Zealand.
$114,000 Smiggle product donated over the last 2 years
Through the Buddy Bag program, supporting vulnerable children experiencing crisis or trauma.
Our contribution to this program includes backpacks, markers, pencils and books.
Smiggle investing in anti-bullying partnerships & raising funds for this
important cause
Including raising over $40,000 in FY24 for anti-bullying organisation Dolly's Dream. Smiggle has
raised over $160,000 across our long term fundraising partnership.
In the UK, our Choose Kindness keyrings raised over £20,000 for The Diana Award.
New Smiggle partnership in New Zealand
Raising over NZ$8,000 through the sale of Choose Kindness keyrings, supporting Kiwi children
living in hardship.
Team member product donation
Our team members ran three product drives this year. These included a period product drive to
benefit Share the Dignity which was aligned with International Women's Day. This product drive
assists women experiencing period poverty when experiencing or at-risk of domestic violence or
homelessness. Our team also ran food drives for OzHarvest and FoodBank, supporting
Australians experiencing food scarcity.
Partners continued
14
Annual Report 2024
We recognise our responsibility to ensure we have a positive impact on the
environment and play our part in making better decisions in our sourcing
and operations.
Our commitment to ongoing improvement includes focusing
on increasing our understanding and impact of our sourcing
and decision-making. In FY24 we continued making changes
and improvements in the following areas:
• Measuring our primary suppliers' Greenhouse Gas
emissions in ERSA audits. So far over 85 sites have had data
captured. Several sites are currently using renewable energy
which will inform future projects and supplier requirements
• Commenced scoping the upcoming Climate Related
Financial Disclosures legislation to ensure future compliance
• Commenced the conversion to 100% recycled plastic
packaging in our supply chain, starting with the denim
and pant categories
• All customer-facing shipper bags used in our online
business are 100% recycled plastic
• Continued use of Forest Stewardship Council (FSC)
certified paper and cardboard in our distribution centre
and packaging
• Our orders of paper customer shopping bags versus
reusable plastic customer shopping bags has improved
significantly year-on-year, as set out below:
We acknowledge the need for accelerated change in light of
upcoming legislative requirements. Our work program will
continue to adapt our policies and activities to ensure they
meet the expectations of the suppliers and workers in our
supply chain, our customer, team members and shareholders.
Reground
Our partnership with social enterprise Reground has
continued in our Melbourne support office and Australian
distribution centres. Both our coffee grounds and soft
plastics are collected and are distributed or recycled into
positive solutions.
Soft plastic is recycled into building film or turned into
innovative Plastoil, whilst coffee grounds are distributed to
the Melbourne zoo as well as home or community gardens.
Through our partnership with Reground we have recovered
5,583kg of resources, whilst avoiding 6,754 greenhouse
gas emissions.
Soft plastic recycling:
2,802 kg
Emissions
avoided
3,503 kg
Soft plastic
diverted
39%
Building Film
61%
Plastoil
Coffee ground collection:
68%
Home
Gardens
26%
Melbourne
Zoo
4%
Community
Gardens
2,080 kg
Coffee diverted
3,952 kg
Emissions avoided
As a signatory to the Australian Packaging Covenant
(APCO), we report each year on our waste and
packaging. With a higher accuracy in data required
this year, we engaged with a third party to assist in
measuring our packaging and APCO data requirements.
Our work will continue in the next reporting period
with a focus on training our teams on APCO's
sustainable packaging guidelines.
15.7%
77.1%
43.2%
-122.7%
-115.1%
-29.2%
-150%
-100%
-50%
0%
50%
100%
Small bags
Medium bags
Large bags
Paper
Plastic
Customer shopping bag orders FY24
% increase/decrease by bag size
Planet
Premier Investments Limited 15
Our product ranges are evolving & improving to meet changing customer trends
and values.
We are on a journey of sourcing more responsible products across our brands in recognition of the social and environmental
impacts that our purchasing decisions have. As the majority of our apparel products we sell are made from cotton, polyester
or viscose fibres we are focussed on converting from the conventional fabrications to more responsible options. In FY24,
our key initiatives with our product ranges included:
Better Cotton membership
We partner with Better Cotton to improve cotton farming
globally. Through its implementation partners, Better Cotton
trains farmers to use water efficiently, care for soil health and
natural habitats, reduce the use of harmful chemicals and
respect workers' rights and wellbeing. In FY24, we sourced
1,718 metric tonnes of Better Cotton across Just Jeans,
Jay Jays, Peter Alexander, Dotti, Portmans and Jacqui E.
In the reporting period we commissioned third party
auditor, Control Union to conduct an independent
assessment of our Better Cotton sourcing data.
This requirement was mandated for Better Cotton
brand members, to ensure the correct cotton
consumption data is submitted annually.
After working closely with Control Union to close
out a corrective action plan (CAP) from the
assessment, Just Group were given a successful
outcome declaration, outlining that our processes
for collecting and storing data are compliant with
Better Cotton's requirements.
Additionally, through this auditing process we
identified areas of improvement to ensure data
collection is streamlined across all brands.
These changes will be implemented in FY25.
Australian Cotton Trial
Just Jeans began a trial of sourcing Australian cotton for a
range of women's t-shirts which were manufactured with one
of our strategic factory partners in Bangladesh. The success of
this trial will inform future sourcing efforts.
Global Organic Textile Standard (GOTS)
Products sourced to the GOTS standard focus on a range
of social and environmental metrics in relation to organic
processing methods. Clothing produced under a GOTS
certification must use a minimum of 95% organic cotton.
Peter Alexander continues its commitment to GOTS for a
selection of women's, junior and baby sleepwear. In the
reporting period, 20% and 5% of the baby and junior
ranges respectively were sourced to the GOTS standard.
Responsible Viscose Sourcing
Our aim is to avoid untraceable sources of viscose and to
ensure it doesn't come from endangered and ancient forests.
LENZI NG™ ECOVERO™ and Birla Cellulose's Liva Eco™ are
viscose fibres derived from certified renewable wood sources
and made using more responsible production methods, both
generating lower emissions and having a reduced water
impact than traditional viscose. In the reporting period,
Jacqui E, Dotti, Portmans and Peter Alexander had a number
of products which contained ECOVERO™ or Liva Eco™.
Recycled Polyester
We recognise the environmental impact of sourcing
synthetic fibres derived from petroleum, such as polyester.
Recycled polyester uses existing materials in the supply chain
to help create new fabric. With a lower reliance on resources
such as water and energy, these fabrics are less resource
intensive than conventional polyester. In the reporting period,
our teams continued to source recycled polyester where
possible into new ranges.
Cotton Pledge
We do not condone the sourcing of cotton harvested from
any region where state sanctioned forced labour regimes or
where forced labour practices exist.
Animal welfare
We do not condone any form of animal cruelty. The following
animal derived materials are banned from all Just Group
products – angora & other rabbit hair; fur, feathers and
exotic skins.
Product
16
Annual Report 2024
Premier Investments Limited
A.C.N. 006 727 966
For the period 30 July 2023 and 27 July 2024
Financial Report
Directors’ Report
2
Auditor’s Independence Declaration
34
Statement of Comprehensive Income
35
Statement of Financial Position
36
Statement of Cash Flows
37
Statement of Changes In Equity
38
Notes to the Financial Statements
39
Directors’ Declaration
88
Independent Auditor’s Report to the
Members of Premier Investments Limited
90
ASX Additional Information
96
Corporate Directory
97
Contents
1
Annual Report 2024
Directors’ Report
Premier Investments Limited 2
The Board of Directors of Premier Investments Limited (A.B.N. 64 006 727 966) has pleasure in submitting its report in
respect of the financial year ended 27 July 2024.
The Directors present their report together with the consolidated financial report of Premier Investments Limited (the
“Company” or “Premier") and its controlled entities (the “Group”) for the 52 week period 30 July 2023 to 27 July 2024,
together with the independent audit report to the members thereon.
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of the report are
as follows. Directors were in office for this entire period unless otherwise stated.
Solomon Lew Chairman and Non-Executive Director
Mr. Lew was appointed as Non-Executive Director and Chairman of Premier on 31 March 2008. Mr. Lew is a director of
Century Plaza Investments Pty Ltd, the largest shareholder in Premier and was previously Chairman of Premier from
1987 to 1994.
Mr. Lew has over 50 years’ experience in the manufacture, wholesale and retailing of textiles, apparel and general
merchandise, as well as property development. His success in the retail industry has been largely due to his ability to
read fashion trends and interpret them for the Australasian market, in addition to his demonstrated ability in the timing
of strategic investments.
Mr. Lew was a Director of Coles Myer Limited from 1985 to 2002, serving as Vice Chairman from 1989, Chairman from
1991 to 1995, Executive Chairman in 1995 and Vice Chairman in 1995 and 1996.
Mr. Lew is a member of the World Retail Hall of Fame and is the first Australian to be formally inducted.
He is also a former Board Member of the Reserve Bank of Australia and former Member of the Prime Minister’s
Business Advisory Council.
Mr. Lew was the inaugural Chairman of the Mount Scopus Foundation (1987 – 2013) which supports the Mount
Scopus College, one of Australia’s leading private colleges with 2000 students. He has also been the Chairman or a
Director of a range of philanthropic organisations.
Dr. David M. Crean Deputy Chairman and Non-Executive Director
Dr. Crean has been an Independent Non-Executive Director of Premier since December 2009, Deputy Chairman since
July 2015 and is currently the Chairman of Premier’s Audit and Risk Committee (appointed August 2010).
Dr. Crean was Chairman of the Hydro Electric Corporation (Hydro Tasmania) from September 2004 until October 2014
and was also Chairman of the Business Risk Committee at Hydro Tasmania, member of the Audit Committee and
Chairman of the Corporate Governance Committee.
Dr. Crean was State Treasurer of Tasmania from August 1998 to his retirement from the position in February 2004. He
was also Minister for Employment from July 2002 to February 2004. He was a Member for Buckingham in the
Legislative Council from 1992 to February 1999, and then for Elwick until May 2004. From 1989 to 1992 he was the
member for Denison in the House of Assembly. From 1993 to 1998 he held Shadow Portfolios of State Development,
Public Sector Management, Finance and Treasury.
Dr. Crean has been a Non-Executive Director and Deputy Chairman of Moonlake Investments, owner of VDL dairy
farms in Tasmania from August 2016 to April 2018. He is also a Board member of the Linfox Foundation. Dr. Crean
graduated from Monash University in 1976 with a Bachelor of Medicine and Bachelor of Surgery.
Directors’ Report continued
3
Annual Report 2024
Timothy Antonie Non-Executive Director and Lead Independent Director
Mr. Antonie was appointed to the Board of Directors on 1 December 2009. He holds a Bachelor of Economics degree
from Monash University and qualified as a Chartered Accountant with Price Waterhouse. He has 20 years’ experience
in investment banking and formerly held positions of Managing Director from 2004 to 2008 and Senior Advisor in 2009
at UBS Investment Banking, with particular focus on large scale mergers and acquisitions and capital raisings in the
Australian retail, consumer, media and entertainment sectors.
Mr. Antonie is also Chairman of Breville Group Limited and Netwealth Group Limited and is a Principal of Stratford
Advisory Group.
Sylvia Falzon Non-Executive Director
Ms. Falzon was appointed to the Board of Directors on 16 March 2018. As a Non-Executive Director since 2010, Ms.
Falzon has experience across a range of sectors and customer driven businesses in financial services, health, aged
care, e-commerce and retail. During this time, she has been involved in several business transformations, IPOs,
merger and acquisitions and divestment activities. Ms. Falzon is currently an Independent Non-Executive Director of
the ASX listed company Suncorp Group Limited. In the not-for-profit sector, she is the Chairman of Cabrini Australia
Limited, and is also a member of the Australian Government Takeovers Panel. Ms. Falzon previously served on the
board of ASX listed companies Zebit Inc until 17 March 2022 and Regis Healthcare until October 2021.
Ms. Falzon holds a Masters Degree in Industrial Relations and Human Resource Management (Hons) from the
University of Sydney and a Bachelor of Business from the University of Western Sydney. She is a Senior Fellow of the
Financial Services Institute of Australasia and a Fellow of the Australian Institute of Company Directors.
Sally Herman Non-Executive Director
Ms. Herman is an experienced Non-Executive Director in the fields of financial services, retail, manufacturing and
property. She had a successful executive career spanning 25 years in financial services in both Australia and the US,
transitioning in late 2010 to a full time career as a Non-Executive Director.
Prior to that, she had spent 16 years with the Westpac Group, running major business units in most operating divisions
of the Group as well as heading up Corporate Affairs and Sustainability through the merger with St. George and the
global financial crisis.
Ms. Herman sits on both listed and not-for-profit Boards, including Suncorp Group Limited, Breville Group Limited and
Abacus Property Group. She is also a Trustee of the Art Gallery of NSW. Ms. Herman was previously a director of
Irongate Funds Management Limited (taken over by Charter Hall in 2022), and E&P Financial Group Limited (resigned
November 2021). Ms. Herman holds a Bachelor of Arts from the University of New South Wales and is a Graduate of
the Australian Institute of Company Directors.
Henry D. Lanzer AM B.COM. LLB (Melb) Non-Executive Director
Henry Lanzer AM is Managing Partner of Australian commercial law firm, Arnold Bloch Leibler. Henry has over 40
years’ experience in providing legal, corporate finance and strategic advice to some of Australia’s leading companies.
Mr. Lanzer was appointed to the Board of Directors in 2008. He is a Non-Executive Director of Just Group Limited,
Thorney Opportunities Limited and previously the TarraWarra Museum of Art and the Burnett Institute. He is also a Life
Governor of the Mount Scopus College Council. In June 2015, Mr. Lanzer was appointed as a Member of the Order of
Australia.
Premier Investments Limited 4
Terrence L. McCartney Non-Executive Director
Mr. McCartney has had a long and successful career in retail. Mr. McCartney started at Boans Department Stores in
Perth then moved to Grace Bros in Sydney. After the acquisition of Grace Bros by Myer, he relocated to the merged
Department Stores Group in Melbourne within the merchandise and marketing department. His successful career
within Coles Myer meant that Terry then moved to the Kmart discount department stores as Head of Merchandise and
Marketing and then Managing Director. Following several years as Managing Director of Kmart Australia and New
Zealand, Terry became Managing Director of Myer Grace Bros. For 5 years Terry lead year on year growth in
profitability of Australia’s largest department store.
Terry’s experience spans the full spectrum of retailing, ranging from luxury goods in department stores to large mass
merchandise discount operations. Terry has also been retained by large international accounting and legal firms as an
expert witness in relation to Australian retail.
In addition to his extensive list of retail experience, he has also been an advisor to large Australian and international
mining companies, prior to joining the Just Group Board in 2008. Terry lends his extensive retail and commercial
expertise to the Just Group as Non-Executive Director, and by serving on a number of committees and through various
store and site visits, both locally and overseas. He is also involved in seasonal and trading performance reviews for the
Group. Terry is a member of the Remuneration and Nomination Committee of Premier Investments Limited. In August
2017, he was appointed Chairman of the Remuneration and Nomination Committee. Terry is also a Non-Executive
Director of Myer Holdings Limited.
Michael R.I. McLeod Non-Executive Director
Mr. McLeod is a former Executive Director of the Century Plaza Group. He has been a Non-Executive Director of
Premier Investments Limited since 2002 and was a Non-Executive Director of Just Group Limited from 2007 to 2013.
Past experience includes the Australian Board of an international funds manager, chief of staff to a Federal Cabinet
Minister and statutory appointments including as a Commission Member of the National Occupational Health and
Safety Commission. He holds a Bachelor of Arts (First Class Honours and University Medal) from the University of
New South Wales.
Andrea Weiss Non-Executive Director (Appointed: 4 December 2023)
Ms Weiss was appointed to the Board of Directors on 4 December 2023. She brings to Premier a thirty-year career in
senior leadership with some of the world’s foremost retailers. She founded The O Alliance LLC and is Chief Executive
Officer and founder of Retail Consulting Inc in the United States of America. Ms Weiss has held various senior
executive positions with notable retailers, including as Executive Chair of Grupo Cortefiel/Tendam (Spain), President
Guess Inc, Chief Stores Officer L Brands, Executive Vice President Ann Taylor, and Director of Merchandising of The
Walt Disney Company. She has also been a senior advisor to technology firms such as SAP, Zebra Technologies, and
TYCO Retail Solutions. Ms Weiss has been a member of several listed company boards in the United States and
currently serves on the boards of O’Reilly Auto Parts (ORLY:NASDAQ) and RPT Realty (RPT:NYSE). She is also
Chairman of the not-for-profit, Delivering Good. Ms. Weiss holds a Masters Degree of Administrative Science from The
John Hopkins University, and a Bachelor of Fine Arts from Virginia Commonwealth University. She also completed
post-graduate studies at Harvard Business School and The Kellogg School at Northwestern University. Ms. Weiss
currently resides in the United States.
Richard Murray Executive Director (Resigned as Director: 21 August 2023)
Richard Murray commenced as Premier Retail Chief Executive Officer on 6 September 2021 and was appointed to the
Premier Board as Executive Director on 3 December 2021. Richard has over 25 years’ experience in retail and finance.
Prior to joining Premier, Richard held the position of Group Chief Executive Officer and Executive Director at JB Hi-Fi
Limited (ceased August 2021). Richard resigned as Premier Retail Chief Executive Officer effective 15 September
2023 and resigned as Executive Director of Premier Investments Limited effective 21 August 2023.
Directors’ Report continued
5
Annual Report 2024
COMPANY SECRETARY
Marinda Meyer
Ms. Meyer has over 20 years’ experience as a Chartered Accountant in senior finance roles. She has both local and
international experience in financial accounting and reporting, corporate governance, and administration of listed
companies.
PRINCIPAL ACTIVITIES
The Group operates a number of specialty retail fashion chains within the specialty retail fashion markets in Australia,
New Zealand, Asia and Europe. The Group also has significant investments in listed securities and money market
deposits.
DIVIDENDS
CENTS
$’000
Final Dividend approved for 2024
70.00
111,761
Dividends paid in the year:
Final Dividend for 2023 (paid: 24 January 2024)
60.00
95,675
Interim Dividend for the half-year ended 27 January 2024 (paid: 24 July 2024)
63.00
100,569
OPERATING AND FINANCIAL REVIEW
Group Overview:
Premier Investments Limited acquired a controlling interest in Just Group Limited (“Just Group”), a listed company on
the Australian Securities Exchange in August 2008. Just Group is a leading specialty fashion retailer with operations in
Australia, New Zealand, Asia and Europe. The Group has a number of well-recognised retail brands, consisting of
Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander and Smiggle. Currently, these seven unique brands
are trading from more than 1,100 stores across six countries, as well as through wholesale and online. The Group’s
key strategic growth initiatives continue to deliver results for the Group. The Group’s emphasis is on a range of brands
that provide quality products to its target demographic and has a sufficiently broad appeal to enable a comprehensive
footprint. Over 90% of the product range is designed, sourced and sold under its own brands. There is a continuing
investment in these brands to ensure they remain relevant to changing customer tastes and remain at the forefront of
their respective target markets.
In addition to its investment in Just Group, Premier owns strategic investments in Breville Group Limited
(2024: 25.45%, 2023: 25.56%) and Myer Holdings Limited (2024: 31.37%, 2023: 25.79%). As at 27 July 2024, both
these investments are reflected as Investments in Associates in the Group’s Statement of Financial Position. The
combined fair value of these investments at year-end was $1,196.8 million (based on quoted market prices as at
27 July 2024).
Premier Investments Limited 6
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Group Overview (continued):
The Group’s reported revenue from contracts with customers, total income and net profit before income tax for the 52
week period ended 27 July 2024 (2023: 52 week period ended 29 July 2023) are summarised below:
CONSOLIDATED
52 WEEKS ENDED
27 JULY 2024
$’000
52 WEEKS ENDED
29 JULY 2023
$’000
% CHANGE
Revenue from contracts with customers
1,595,326
1,643,502
-2.93%
Total interest income
22,010
14,162
+55.42%
Total dividend income
-
4,695
-100%
Total other income and revenue
2,125
2,194
-3.14%
Total revenue and other income
1,619,461
1,664,553
-2.71%
Reported profit before income tax
354,089
382,137
-7.34%
Following the commencement of equity accounting for Myer Holdings Limited (“Myer”) in 2023, the Group increased
its shareholding in Myer to 31.37% during the 2024 financial year (29 July 2023: 25.79%). The Group has continued to
account for its investment in Myer as an investment in associate.
Accounting for an investment as an associate under AASB 128 Investments in Associates and Joint Ventures involve
complex accounting treatments for profit share, dividends received and other gains and losses resulting from
shareholding dilution. To better understand and compare the result of the Group, and the sources of income received
from its investments, the below table presents an adjusted net profit after taxation (Non-IFRS), which reflects the
accounting for the Group’s investments on the basis of dividends received during the year instead of the share of
associate’s profit recorded under equity accounting and also excludes the non-cash impairment expense of intangible
assets. Non-IFRS information is not subject to audit or review.
CONSOLIDATED
52 WEEKS ENDED
27 JULY 2024
$’000
52 WEEKS ENDED
29 JULY 2023
$’000
% CHANGE
Statutory net profit after taxation, under IFRS
257,922
271,078
-4.85%
Exclude:
Share of profit from associates
(42,411)
(30,864)
+37.41%
Loss on investments in associates, resulting from share
issue (included in other expenses)
3,097
703
+340.54%
Non-cash impairment expense of intangible assets
-
5,000
-100%
Include:
Cash dividends received from investment in associates,
not accounted for in statutory profit after taxation
20,955
27,894
-24.88%
Income tax expense adjustment on accounting for
investments in associates
4,838
4,759
+1.66%
Adjusted net profit after taxation (non-IFRS)
244,401
278,570
-12.27%
Directors’ Report continued
7
Annual Report 2024
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Investment Segment:
The Group’s balance sheet remains strong, primarily due to the significant asset holding of the investment segment.
INVESTMENT IN BREVILLE GROUP LIMITED
As at 27 July 2024, the Group continued to reflect its 25.45% (2023: 25.56%) shareholding in Breville Group Limited
(“Breville”) as an investment in associate, with an equity accounted value of $347.2 million (2023: $333.7 million). The
fair value of the Group’s interest in Breville as determined based on the quoted market price for the shares as at
27 July 2024 was $981.5 million (2023: $829.3 million). Dividends received from Breville during the year amounted to
$11.5 million (2023: $10.9 million).
Breville is a company incorporated in Australia, whose shares are quoted on the Australian Securities Exchange. The
principal activities of Breville involves the innovation, development, marketing and distribution of small electrical
appliances.
Details of the Group’s investment in Breville can be summarised as follows:
52 WEEKS ENDED
27 JULY 2024
$’000
52 WEEKS ENDED
29 JULY 2023
$’000
% CHANGE
Fair value of investment at year-end, based on quoted
market prices
981,473
829,270
+18.35%
Carrying value at year-end in the Statement of Financial
Position, based on equity accounting
347,173
333,666
+4.05%
Profit from associate recorded in the Group’s Statement
of Comprehensive Income
30,157
28,169
+7.06%
Cash dividends received from Breville during the year
11,497
10,950
+5.00%
INVESTMENT IN MYER HOLDINGS LIMITED
The Group commenced accounting for its shareholding in Myer Holdings Limited (“Myer”) as an investment in
associate in the 2023 financial period.
As at 27 July 2024, the Group continues to reflect its 31.37% (2023: 25.79%) shareholding in Myer as an investment in
associate, with an equity accounted value of $161.0 million (2023: $125.1 million). The fair value of the Group’s
interest in Myer as determined based on the quoted market price for the shares as at 27 July 2024 was $215.3 million
(2023: $137.7 million). Dividends received from Myer during the year amounted to $9.5 million (2023: $21.6 million).
Myer is a company incorporated in Australia, whose shares are quoted on the Australian Securities Exchange. The
principal activities of Myer involves operation of a number of department stores across Australia and through its online
business.
Premier Investments Limited 8
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Investment Segment (continued):
INVESTMENT IN MYER HOLDINGS LIMITED
Details of the Group’s investment in Myer can be summarised as follows:
52 WEEKS ENDED
27 JULY 2024
$’000
52 WEEKS ENDED
29 JULY 2023
$’000
% CHANGE
Fair value of investment at year-end, based on quoted
market prices
215,302
137,667
+56.39%
Carrying value at year-end in the Statement of Financial
Position, based on equity accounting
161,032
125,108
+28.71%
Profit from associate recorded in the Group’s Statement
of Comprehensive Income
12,254
2,695*
+354.69%
Dividends received from Myer during the year
9,457
21,639*
-56.30%
*Prior to the commencement of equity accounting for Myer in Dec 2023, dividends received were reflected in the profit and loss.
Following the commencement of equity accounting, profit from associate has been recorded in the Group’s Statement of
Comprehensive Income.
PROPERTY INVESTMENT
Premier owns its Australian Distribution Centre, as well as the global head office building of Premier Retail in
Melbourne. These properties are carried at a combined historical written down value at 27 July 2024 of $69.6 million
(2023: $71.2 million).
CASH HOLDINGS
The Investment Segment recorded cash on hand as at 27 July 2024 of $234.1 million (2023: $242.8 million). Interest
earned during the year ended 27 July 2024 amounted to $11.5 million (2023: $8.9 million). The investment segment’s
cash holdings remain strong despite paying $196.2 million in dividends to shareholders during the 2024 financial year
(2023: dividends paid amounted to $237.2 million).
Retail Segment:
As Premier’s core business, Just Group (Premier Retail) was the key contributor to the Group’s operating results for
the financial year. Key financial indicators for the retail segment for the 52 week period ended 27 July 2024
(2023: 52 week period ended 29 July 2023) are highlighted below:
RETAIL SEGMENT
52 WEEKS ENDED
27 JULY 2024
$’000
52 WEEKS ENDED
29 JULY 2023
$’000
% CHANGE
Revenue from contracts with customers
1,595,326
1,643,502
-2.93%
Total segment income
1,607,931
1,650,898
-2.60%
Segment net profit before income tax
313,940
352,515
-10.94%
Directors’ Report continued
9
Annual Report 2024
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment (continued):
The Retail Segment contributed $313.9 million to the Group’s net profit before income tax for the 52 week period
ended 27 July 2024 (2023: $352.5 million net profit before income tax for the 52 week period ended 29 July 2023).
Premier Retail’s Earnings Before Interest and Tax (EBIT), excluding significant items was $325.9 million for the 2024
financial year, a reduction of 8.56% on the previous financial year.
Refer to page 11 of the Directors’ Report for a reconciliation of Premier Retail EBIT and reported Premier Retail Profit
before Tax.
Over the years, Premier Retail has evolved into a multi-channel global business, growing the portfolio of 7 unique
brands to each have a distinctive and competitive market position. The Group’s ability to remain nimble, under the
leadership of an experienced Board and highly motivated senior management team, enables the Group to pivot when
macro-economic environments change.
Premier Retail delivered global sales for the 2024 financial year of $1,595.3 million, a 2.93% reduction on the 2023
record financial year. The 2024 financial year sales result is the second highest sales result in the Group’s history, after
cycling record sales in the 2023 financial year. Global sales are up 25.5% on pre-pandemic sales for the 2019 financial
year.
167.3
187.2
304.3
335.0
356.5
325.9
0
50
100
150
200
250
300
350
400
FY19
(Pre-COVID)
FY20
FY21
FY22
FY23
FY24
Premier Retail EBIT (comparable 52-week basis)
$'million
+ 94.8% on “Pre-Covid” FY19
Premier Investments Limited 10
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Retail Segment (continued):
Revenue from customers per Geographic Segment for the 52 weeks ended 27 July 2024
Pleasingly, Premier Retail delivered a gross margin percentage of 62.6%, up 35 basis points on the previous year
(2023: 62.2%). The strong sales, solid gross profit and strong cost control has delivered a strong EBIT result of
$325.9 million (down 8.6% on a record 2023 financial year EBIT of $356.5 million) in a challenging general
discretionary environment, with consumers facing increased cost of living pressures.
Peter Alexander delivered another record sales result for the 52-week period ended 27 July 2024 of $508.6 million, up
6.2% on a record set in the prior year (2023: $478.9 million). The record result was driven across all Peter Alexander
product categories. The Group’s decision to invest in its retail channel delivered significant growth within the existing
markets of Australia and New Zealand. The Group opened 9 new stores during the 2024 financial year, and 9 stores
were relocated or expanded during the year, significantly improving the customer shopping experience.
Smiggle delivered global sales of $296.0 million for the 52 weeks ended 27 July 2024, a decrease of 7.4% on a record
sales result delivered in the prior financial year following a surge in spending as customers returned post COVID-19.
The Smiggle customer is particularly exposed to increased cost of living pressures in all global markets.
Notwithstanding the challenging environment, the brand continuously strives to deliver innovative and exciting new
product ranges that stretch the age demographic from 3 years old, up to 14 years old. The brand is currently trading
from 43 fewer stores than in the 2019 financial year (pre-COVID), when the brand delivered a then record sales result
of $306.5 million.
The Group’s five iconic Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui-E) delivered a combined
sales result for the period ended 27 July 2024 of $790.7 million - up 10.3% on pre-pandemic sales of $716.7 million in
the 2019 financial year, and trading from 35 less stores than at July 2019. The 2024 financial year sales result for the
Apparel Brands is down 6.4% on the previous year’s record sales result of $844.8 million.
The Retail Segment delivered online sales of $315.3 million for the 52 weeks ended 27 July 2024 contributing 19.8% of
total group sales to customers for the period ended 27 July 2024 (2023: 19.8%). The Group is pleased to have world
class customer facing websites, where the Group’s most viewed store window and largest store is the brand’s online
channel.
The Group seeks to delight customers with a seamless customer experience across all channels, supporting
customers in whichever way they choose to shop. As a result, the Group will continue to invest in people, technology
and marketing to improve our platforms and customer experiences.
The Group operates centralised distribution centres in four countries, including the Group’s owned Australian
Distribution Centre. These distribution centres have enabled the Group to be agile and scale up operations in response
to customer shopping behaviours across all channels.
Australia
79%
New Zealand
10%
Asia
4%
Europe
7%
OPERATING AND FINANCIAL REVIEW (CONTINUED)
Reconciliation between Premier Retail EBIT and Reported Retail Segment Result
The Group’s results are reported under Australian Accounting Standards and International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (IASB). Non-IFRS information is financial information that is presented other than in accordance with all relevant accounting standards and is not subject to audit
or review. The Group provides these Non-IFRS financial measures to better understand key aspects of the performance and drivers of the Group’s Retail Segment. The table below
reconciles the Non-IFRS financial term Premier Retail EBIT to the Reported Retail Segment Result for each of the financial years:
RETAIL SEGMENT
FINANCIAL YEAR
ENDED 27 JULY
2024
$’000
FINANCIAL YEAR
ENDED 29 JULY
2023
$’000
FINANCIAL YEAR
ENDED 30 JULY
2022
$’000
FINANCIAL YEAR
ENDED 31 JULY
2021
$’000
FINANCIAL YEAR
ENDED 25 JULY
2020
$’000
Reported Retail Segment Operating Profit before Taxation
313,940
352,515
353,192
352,112
165,776
Add back: Interest expense (excluding AASB 16 interest on lease liabilities)
4,723
2,755
1,379
1,967
2,757
Adjust for: Net impact of AASB 16 on results
7,237
2,662
(2,039)
(2,147)
427
Pre-AASB 16 EBIT, including one-off and significant items
325,900
357,932
352,532
351,932
168,980
One-off COVID-19 impairment of store plant & equipment and associated costs
-
-
-
-
31,420
One-off COVID-19 net gain from settlement of cash flow hedge book
-
-
-
-
(13,207)
Pre-AASB 16 EBIT, excluding one-off items
325,900
357,932
352,532
351,932
187,193
Non-comparable EBIT contribution for the 53rd week in 2021
-
-
-
(8,894)
-
COVID-19 related rent concessions
-
(1,432)
(10,538)
(19,521)
-
Other Australia and New Zealand holdover rent concessions
-
-
(3,465)
(9,960)
-
COVID-19 United Kingdom temporary rates relief
-
-
(3,500)
(4,600)
-
COVID-19 United Kingdom lockdown grants
-
-
-
(4,622)
-
Pre-AASB 16 Premier Retail EBIT excluding significant items
325,900
356,500
335,029
304,335
187,193
Premier Retail EBIT, expressed in $’ millions
325.9
356.5
335.0
304.3
187.2
Directors’ Report continued
11
Annual Report 2024
Premier Investments Limited 12
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the financial year ended
27 July 2024.
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
The Directors of Premier Investments Limited approved a final ordinary dividend in respect of the 2024 financial year.
The total amount of the final ordinary dividend is $111,761,000 (2023: Final ordinary dividend of $95,675,000) which
represents a fully franked ordinary dividend of 70 cents per share (2023: Final ordinary dividend of 60 cents per
share, special dividend of 16 cents per share). The dividend has not been provided for in the 2024 financial
statements.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Certain likely developments in the operations of the Group and the expected results of those operations in financial
years subsequent to the period ended 27 July 2024 are referred to in the preceding operating and financial review.
No additional information is included on the likely developments in the operations of the Group and the expected
results of those operations as the Directors reasonably believe that the disclosure of such information would be likely
to result in unreasonable prejudice to the Group if included in this report, and it has therefore been excluded in
accordance with section 299(3) of the Corporations Act 2001.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s operations are not subject to any significant environmental obligations or regulations.
SHARE OPTIONS AND SHARES ISSUED DURING THE FINANCIAL YEAR
Unissued Shares:
As at the date of this report, there were 561,780 (2023: 1,051,965) unissued performance rights. Refer to the
remuneration report for further details of the options outstanding in relation to Key Management Personnel.
Shares Issued as a Result of the Exercise of Options:
A total of 433,799 shares (2023: 231,603) were issued during the year pursuant to the Group’s Performance Rights
Plan. No other shares were issued during the year.
ROUNDING
The company is a company of the kind specified in ASIC Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191, dated 24 March 2016. In accordance with that ASIC instrument amounts in the financial
statements and the Directors’ Report have been rounded to the nearest thousand dollars unless specifically stated to
be otherwise.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
To the extent permitted by law, the company indemnifies every person who is or has been a director or officer of the
company or of a wholly-owned subsidiary of the company against liability for damages awarded or judgments
entered against them and legal defence costs and expenses, arising out of a wrongful act, incurred by that person
whilst acting in their capacity as a director or officer provided there has been no admission, or judgment, award or
other finding by a court, tribunal or arbitrator which establishes improper use of position, or committing of any
criminal, dishonest, fraudulent or malicious act.
The officers include the Directors, as named earlier in this report, the Company Secretary and other officers, being
the executive senior management team. Details of the nature of the liabilities covered or the amount of the premium
paid in respect of the Directors, and Officers, liability insurance contracts are not disclosed as such disclosure is
prohibited under the terms of the contracts.
Directors’ Report continued
13
Annual Report 2024
INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the company has agreed to indemnify its auditors, Ernst & Young, as part of the
terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
DIRECTOR INTERESTS IN SHARES AND RIGHTS OF THE COMPANY
At the date of this report, the interests of the Directors in the shares and performance rights of the company were:
Solomon Lew
4,437,699 ordinary shares**
Timothy Antonie
5,001 ordinary shares
Sally Herman
11,500 ordinary shares
Henry Lanzer AM
27,665 ordinary shares
Michael McLeod
28,186 ordinary shares
**Mr. Lew is an associate of Century Plaza Investments Pty. Ltd. and Metrepark Pty. Ltd (Associated Entities). The
Associated Entities, collectively, have a relevant interest in 59,804,731 shares in the Company. However, Mr. Lew
does not have a relevant interest in the shares of the Company held by the Associated Entities.
DIRECTORS’ MEETINGS
The number of meetings of the Board of Directors during the financial year, and the number of meetings attended by
each Director were as follows:
BOARD MEETINGS
AUDIT AND RISK COMMITTEE
REMUNERATION AND
NOMINATION COMMITTEE
DIRECTOR
MEETINGS
HELD
NUMBER
ATTENDED
MEETINGS
HELD
NUMBER
ATTENDED
MEETINGS
HELD
NUMBER
ATTENDED
Solomon Lew
10
10
-
-
-
-
Richard Murray1
2
-
-
-
-
-
Timothy Antonie
10
10
5
5
2
2
David Crean
10
10
5
5
-
-
Sylvia Falzon
10
10
5
5
-
-
Sally Herman
10
10
5
5
-
-
Henry Lanzer AM
10
10
-
1
-
-
Terrence McCartney
10
8
-
2
2
2
Michael McLeod
10
10
-
-
2
2
Andrea Weiss2
5
5
-
2
-
-
CORPORATE GOVERNANCE STATEMENT
To view Premier’s Corporate Governance Statement, please visit www.premierinvestments.com.au/about-us/board-
policies.
AUDITOR INDEPENDENCE
The Directors received a copy of the Auditor’s Independence Declaration in relation to the audit for this financial year
and is presented on page 34.
1 Richard Murray resigned as a director effective 21 August 2023
2 Andrea Weiss was appointed as a director effective 04 December 2023
Premier Investments Limited 14
NON-AUDIT SERVICES
The Directors are satisfied that the provision of non-audit services is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit
service provided means that independence was not compromised.
Details of non-audit services provided by the Group’s auditor, Ernst & Young, can be found in Note 30 of the
Financial Report.
REMUNERATION REPORT
The Remuneration Report, which forms part of this Directors’ Report, is presented from page 15.
The Directors’ Report is signed in accordance with a resolution of the Board of Directors.
Solomon Lew
Chairman
24 September 2024
Directors’ Report continued
15
Annual Report 2024
REMUNERATION REPORT
Dear Shareholders,
As Chairman of the Remuneration and Nomination Committee, I am pleased to present Premier Investments’
remuneration report for the 52 weeks ended 27 July 2024. This report outlines, in detail, the remuneration outcomes
and incentive arrangements, related to our performance.
Premier has yet again delivered a strong result for shareholders during the 2024 financial year. Premier Retail
delivered a pre-AASB16 EBIT of $325.9 million for the year, down 8.56% on the record EBIT result delivered in the
previous financial year, but up 94.8% on pre-COVID FY19. This result was delivered despite a challenging general
discretionary retail environment with consumers facing increased cost of living pressures. The Group remained
focused on delivering value for customers in the product offering and shopping experience, whilst managing
inventory productivity and operational efficiencies.
The Board recognises that the performance of the Group depends on the quality and dedication of our entire global
workforce. Our experienced executive leadership team, which includes our executive Key Management Personnel,
provide the integral backbone to the Group.
The Group continued its strong performance in FY24. This has translated into strong returns for our shareholders:
Premier Investments Limited statutory net profit after tax of $257.9 million, although this is down 4.9% on
the 2023 financial year, this remains up over 140% on a ‘pre-COVID’ 2019 financial year;
Premier Investments Limited adjusted net profit after tax of $244.4 million (refer to page 6 of the Directors’
Report for a breakdown of adjusted net profit after tax);
Premier Retail EBIT of $325.9 million, a decrease of 8.56% on a record FY23, and an increase of 94.8% on
a ‘pre-COVID’ 2019 financial year;
Premier Retail sales to customers of $1,595.3 million, a decrease of 2.93% on the previous financial year,
and up 25.5% on a ‘pre-COVID’ 2019 financial year;
During the 2024 financial year, Premier paid dividends to shareholders totaling over $196.2 million;
Full year total ordinary dividends of 133 cents per share for the 2024 financial year; an increase of 2.3% on
the previous financial year total dividends (ordinary and special), and the highest ordinary dividend in the
Group’s history;
The Group’s total shareholder return (TSR) consistently outperforming the ASX 200 Index return.
70
80
100
114
133
25
16
0
20
40
60
80
100
120
140
FY20
FY21
FY22
FY23
FY24
Full year ordinary and special dividends per share
(fully franked)
Ordinary
Special
Premier Investments Limited 16
REMUNERATION REPORT (CONTINUED)
The Group’s ability to respond quickly to changing environments, through strategic planning and execution by an
experienced Board and skilled management team, have led to shareholders enjoying strong financial returns. The
Group is committed to ensuring that executive remuneration outcomes are explicitly linked to the overall performance
and success of the Group. The importance of attracting, retaining and rewarding a diverse senior executive team is
crucial in navigating through a complex macro-economic environment.
The Group’s strategic review, announced by the Premier Board in August 2023, has continued to progress
throughout the year. Premier Retail’s experienced senior management team continued to focus on exceptional retail
execution and responding to rapid changes in consumer shopping behaviours and preferences throughout the year,
whilst identifying, developing and refining growth paths for each of Smiggle, Peter Alexander and the Apparel Brands
as part of the strategic review. The Premier Board’s continuing assessment of these growth opportunities takes into
consideration the principle of value creation for Premier’s stakeholders.
The Remuneration Report summarises our remuneration strategies, the way in which incentives are calculated, and
the connection between those strategies and the achievement of positive returns for shareholders.
Terrence McCartney
Chairman, Remuneration and Nomination Committee
Directors’ Report continued
17
Annual Report 2024
REMUNERATION REPORT (AUDITED)
This remuneration report for the 52 weeks ended 27 July 2024 outlines the remuneration arrangements of the Group
in accordance with the requirements of the Corporations Act 2001 (Cth), as amended (the “Act”) and its regulations.
This information has been audited as required by section 308 (3C) of the Act.
The remuneration report is presented under the following headings:
1.
Introduction
2.
Remuneration Governance
3.
Executive remuneration arrangements:
A. Remuneration principles and strategy
B. Fixed remuneration objectives
C. Group performance and its link to executive remuneration
D. Group performance and its link to STI
E. Group performance and its link to LTI
F.
Detail of incentive plans
4.
Remuneration framework of CEO (Retail)
5.
Executive service agreements
6.
Non-Executive Director remuneration arrangements
7.
Remuneration of Key Management Personnel
8.
Additional disclosures relating to Rights and Shares of Key Management Personnel
9.
Additional disclosures relating to transactions and balances with Key Management Personnel and their
Related Parties
1. INTRODUCTION
The remuneration report details the remuneration arrangements for Key Management Personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group.
The table below outlines the Group’s KMP during the 52 weeks ended 27 July 2024. Unless otherwise indicated, the
individuals were KMP for the entire financial year.
KEY MANAGEMENT PERSONNEL
(i)
Non-Executive Directors
Solomon Lew
Chairman and Non-Executive Director
David Crean
Deputy Chairman and Non-Executive Director
Timothy Antonie
Non-Executive Director and Lead Independent Director
Sylvia Falzon
Non-Executive Director
Sally Herman
Non-Executive Director
Henry Lanzer AM
Non-Executive Director
Terrence McCartney
Non-Executive Director
Michael McLeod
Non-Executive Director
Andrea Weiss
Non-Executive Director (appointed effective 4 December 2023)
Premier Investments Limited 18
REMUNERATION REPORT (AUDITED) (CONTINUED)
1. INTRODUCTION (CONTINUED)
KEY MANAGEMENT PERSONNEL (CONTINUED)
(ii) Executive Director
Richard Murray
Executive Director and Chief Executive Officer (Retail) (see note (a))
(iii) Executives
John Bryce
Interim Chief Executive Officer (Retail) and Chief Financial Officer, Just Group Limited
(see note (b))
Marinda Meyer
Company Secretary, Premier Investments Limited
(a) Mr. Murray resigned as Chief Executive Officer (Retail) effective 15 September 2023 and resigned as an
Executive Director effective 21 August 2023. Mr. Murray ceased being a KMP as of 15 September 2023.
(b) Mr. Bryce was appointed Interim Chief Executive Officer (Retail) on 21 August 2023, in addition to fulfilling his
duties as Chief Financial Officer of Just Group Limited.
There were no other changes to the KMP after the reporting date and before the date the financial report was
authorised for issue.
2. REMUNERATION GOVERNANCE
Remuneration and Nomination Committee
The Remuneration and Nomination Committee (“Committee”) of the Board of Directors of the Group (“Board”) comprises
three Non-Executive Directors. The Committee is led by Terrence McCartney, an independent Non-Executive Director,
and the majority of its members are independent Non-Executive Directors. This demonstrates an ongoing commitment
to the independence of the Committee. The Committee has delegated decision-making authority for some matters
related to the remuneration arrangements for KMP and is required to make recommendations to the Board on other
matters.
Specifically, the Board approves the remuneration arrangements of the Chief Executive Officer (Retail) (“CEO Retail”)
and senior executives, including awards made under the short-term incentive (“STI”) and long-term incentive (“LTI”)
plans, following recommendations from the Committee. The Board also sets the aggregate remuneration for Non-
Executive Directors (which is subject to shareholder approval) and Non-Executive Director fee levels.
The Committee meets regularly. The CEO (Retail) attends certain Committee meetings by invitation, where
management input is required. The CEO (Retail) is not present during discussions relating to his own remuneration
arrangements.
Further information relating to the Committee’s role, responsibilities and membership can be seen at
www.premierinvestments.com.au.
Use of remuneration advisors
The Committee may from time to time seek external remuneration advice to ensure it is fully informed when making
remuneration decisions. Remuneration advisors are engaged by, and report directly to, the Committee.
No remuneration recommendations for the purposes of the Corporations Act 2001 were made during the 2024 financial
year.
Directors’ Report continued
19
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS
3A. Remuneration principles and strategy
For the 52 weeks ended 27 July 2024, the executive remuneration framework comprised of fixed remuneration, STI
and LTI, as outlined below.
The Group aims to reward executives with a competitive level and mix of remuneration appropriate to their position and
responsibilities and linked to shareholder value creation.
The Group’s executive remuneration strategy is designed to attract, motivate and retain high performing individuals,
and align the interests of executives with shareholders.
The Group operates mainly in the retail industry, with significant revenues earned in its traditional markets of Australia
and New Zealand. The retail industry in these markets has seen marked structural change over recent years, including
a prevalence in the use of new and existing technology, an increase in international competitors and significant
changes in general consumer sentiment.
Complementing its strong market position in Australia and New Zealand, the Group continues to operate in
international markets in Asia and Europe.
REVENUE FROM CUSTOMERS PER GEOGRAPHIC AREA FY24
The market for skilled and experienced executives in the retail industry continues to be increasingly competitive and
international in nature. The Group’s strong domestic position, as well as global reach, provides exposure to an
international pool of talent and access to a diverse range of strategies to respond to industry changes.
Given these structural changes and the Group’s growth focus, the Board believes it is both critical to the future success
of the business, and in the best interest of shareholders, to attract, retain and develop the best possible executive team
through the provision of competitive remuneration packages, and incentive arrangements which are aligned to growth
and performance. The year-on-year growth in performance and shareholder value over more than a decade, is a
testament to Premier’s remuneration strategy.
The Group’s strategic objective is to be recognised as a leader in the retail industry and build long-term value for
shareholders.
The Group is committed to ensuring that executive remuneration outcomes are explicitly linked to the overall
performance and success of the Group. This section illustrates this link between the Group’s strategic objectives and
its executive remuneration strategies.
Australia
79%
New Zealand
10%
Asia
4%
Europe
7%
Premier Investments Limited 20
REMUNERATION REPORT (AUDITED) (CONTINUED)
EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3A. Remuneration principles and strategy (continued)
Group Objective
To be recognised as a leader in our industry and build long-term value for our shareholders.
Remuneration strategy linkages to Group objective
Align the interests of executives with shareholders
The remuneration framework incorporates “at-
risk” components, through STI and LTI plans.
Performance is assessed against a suite of
financial and non-financial measures relevant
to the success of the Group and generating
returns for shareholders.
Attract, motivate and retain high performers
Remuneration is competitive as compared to
companies of a similar size and complexity.
Longer-term remuneration frameworks and
“at-risk” components encourage retention,
development and a multi-year performance
focus.
Component
Vehicle
Purpose
Link to performance
Fixed
remuneration
Comprises
base salary,
superannuation
contributions
and other
benefits.
To provide competitive
fixed remuneration with
reference to the applicable
role, market and relevant
executive’s experience.
Both the executive’s performance,
and the performance of the Group,
are considered during regular
remuneration reviews.
STI
Awarded in
cash.
Rewards executives for
their contribution to
achievement of Group and
business unit annual
outputs and performance
outcomes.
Key financial metrics based
primarily on Premier Retail’s
earnings before interest and
taxation (“EBIT”) of each business
unit, as well as a suite of other
internal financial and non-financial
measures.
LTI
Awarded in
performance
rights.
Rewards executives for
their contribution to the
creation of shareholder
value over the long term.
Vesting of performance rights is
dependent on both a positive total
shareholder return (“TSR”) and
measuring against a Comparison
Peer Group (defined in Section 3F
of this report).
Discretionary
Bonus
Awarded in
cash or
performance
rights.
Rewards executives in
exceptional circumstances
and/or linked to long term
shareholder outcomes.
Granted at the discretion of the
Board upon recommendation of the
Committee in exceptional
circumstances, and when in the
best interests of the Group.
Directors’ Report continued
21
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3B. Fixed remuneration objectives
Fixed remuneration is reviewed by the Committee. The process consists of a review of the Group, applicable business
unit and executive’s individual performance, relevant comparative remuneration (both externally and internally) and,
where appropriate, external advice. The Committee has access to external advice independent of management.
3C. Group performance and its link to executive remuneration
The Group is pleased to report that despite tough economic conditions, it continued to generate strong returns for
shareholders. The dividends approved for the year reaffirm the confidence the Directors have in the Group’s future
performance and underline Premier’s commitment to enhancing shareholder value through capital management and
business investment.
2024
2023
2022
2021
2020
Closing share price at end of financial year
$32.13
$22.18
$21.04
$26.84
$17.57
Basic earnings per share (cents)
161.78
170.31
179.40
171.15
86.89
Dividends per share (cents)
133.0
130.02
125.02
80.0
70.0
Return on equity (%)
14.4%
15.6%1
17.0%
17.7%
10.2%
1 Return on Equity excludes the impact of a non-cash impairment of intangible assets in FY23 ($5 million).
2 Comprising an ordinary dividend of 114 cents per share (FY22: 100 cents per share), and a special dividend of 16 cents per share.
(FY22: 25 cents per share).
The below chart illustrates the total return of the Premier share price against the S&P/ASX200 Accumulation Index,
over the past 5 years, between 2019 and 2024, where the Group has delivered a TSR of 197%, outperforming the
Index’s return of 47%.
PREMIER SHARE PRICE TOTAL RETURN AGAINST ASX200 ACCUMULATION INDEX – 5 YEARS
0%
25%
50%
75%
100%
125%
150%
175%
200%
.AXJOA Total Return
PMV.AX Total Return
Premier Investments Limited 22
REMUNERATION REPORT (AUDITED) (CONTINUED)
+ 94.8% on “Pre-Covid” FY19
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3C. Group performance and its link to executive remuneration (continued)
The below chart illustrates full year ordinary and special dividends per share (fully franked) over a 5 year period:
Premier Retail achieved another strong result in FY24 against a backdrop of challenging markets, with an EBIT of
$325.9 million, a decrease of 8.6% on the record 2023 financial year. Premier Retail’s FY24 EBIT is up 94.8% on a
“Pre-COVID” FY19 EBIT of $167.3 million. The following chart shows Premier Retail’s EBIT for the past 6 years.
Note: Please refer to page 11 of the Directors’ Report for a reconciliation between Premier Retail EBIT (excluding one-off and
significant items) and statutory reported operating profit before tax for the Retail Segment.
70
80
100
114
133
25
16
0
20
40
60
80
100
120
140
FY20
FY21
FY22
FY23
FY24
Full year ordinary and special dividends per share
(fully franked)
Ordinary
Special
167.3
187.2
304.3
335.0
356.5
325.9
0
50
100
150
200
250
300
350
400
FY19
(Pre-COVID)
FY20
FY21
FY22
FY23
FY24
Premier Retail EBIT (comparable 52-week basis)
$'million
Directors’ Report continued
23
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3D. Group performance and its link to STI
STI payment outcomes are primarily driven by Premier Retail’s EBIT growth. The Board continuously evaluates the
most appropriate STI performance hurdles and metrics for each year, ensuring that the STI component rewards the
achievement of metrics most appropriate to the growth of the Group in the relevant year.
For the 2024 financial year, the Group provided Mr. Bryce with an STI opportunity equivalent to 50% of his fixed
remuneration, subject to the achievement of performance hurdles, based primarily on Premier Retail EBIT growth. The
Board determined that no STI payment was to be made to Mr. Bryce in relation to the 2024 financial year.
3E. Group performance and its link to LTI
The performance measure which drives LTI vesting is dependent on an absolute test, being a positive Premier TSR
performance and a relative test, being a comparison against the Comparison Peer Group (as defined in section 3F of
this report).
The table below illustrates the outcomes of the TSR testing performed during the 2024 financial year in relation to
KMP. Due to Premier’s strong share price performance over the past four years, where positive TSR meant the
absolute test was met and the award was eligible for testing, the Group’s relative performance was above the 75th
percentile against the peer group for both tranches. This resulted in vesting outcomes of 100%.
Testing Period
Share price at
start of testing
period
Share price at
end of testing
period
Dividends paid
(fully franked)
TSR percentage
TSR percentile
1 May 2020 to
30 Sept 2023
$13.21
$25.00
$3.45
98.94%
84
1 May 2020 to
30 Apr 2024
$13.21
$30.20
$4.05
145.59%
86
Mr. Bryce was the only member of the current executive KMP participating in the 2020 LTI grant (tranche 2 and
tranche 3 tested within the financial year).
3F. Detail of incentive plans
Short term incentive (“STI”)
The Group operates an annual STI program which is awarded subject to the attainment of clearly defined financial and
non-financial Group and business unit measures.
Who participates?
Executives who have served a minimum of nine months.
How is STI delivered?
Cash.
What is the STI
opportunity?
Executives have an STI opportunity of between 0% and 100% of their fixed
remuneration.
Premier Investments Limited 24
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Short term incentive (“STI”) (continued)
What are the applicable
financial performance
measures?
STI payments awarded to each executive are explicitly aligned to the key value
drivers of Premier Retail, such that rewards are payable based on the following
criteria:
target EBIT of Premier Retail and an incentive pool has been created;
the executive receives a performance appraisal on target or above;
the executive’s minimum performance outcomes have been achieved; and
the executive’s key performance indicators (“KPIs”) have been met.
The financial performance measures are chosen with reference to the strategic
objective to promote both short term success and provide a framework for
delivering long term value.
The criteria are designed to ensure STI outcomes are aligned to the creation of
shareholder value.
The KPI criteria aligns the individual activities and focus of the executive to
creating shareholder value. Each executive is set multiple KPIs covering
financial, non-financial, Group and business unit measures of performance. The
KPIs are quantifiable and weighted according to their value.
The target EBIT for each year is expected to incorporate growth on the previous
year. As such, in a year in which STI payments are made, Premier Retail
considers the actual result in the prior year in order to assess an STI in the
following year. This mechanism ensures the STI scheme continues to build
shareholder returns over time.
What are the applicable
non-financial
performance
measures?
The award of an STI is dependent on the executive achieving individual aligned
non-financial performance indicators, such as:
retention of existing customers through outstanding customer service;
implementation of key growth initiatives;
demonstrated focus on a continuous improvement in safety performance; and
demonstrated focus on the growth and development of leadership and team
talent to encourage leadership succession.
How is performance
assessed?
After the end of the financial year, following consideration of the financial and non-
financial performance indicators, the Committee obtains input from the CEO
Retail in relation to the amount of STI to be paid to eligible executives.
The Committee then provides its recommendations to the Board for approval. The
provision of any STI payments is subject to the sole discretion of the Chairman.
Directors’ Report continued
25
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Long-term incentive (“LTI”)
Premier’s LTI plan seeks to create shareholder value over the long term by aligning executive remuneration with the
Group’s strategic objectives. The majority of Premier’s LTI rights are assessed according to the performance measures
described in the table below. In certain circumstances, Premier considers that the most appropriate performance
condition relates to retention of key executives. In these circumstances, limited equity rights are issued to certain
executives with the only performance measure relating to the executive remaining employed by the Group on the
relevant vesting date.
Who participates?
Executives.
How is LTI delivered?
Performance rights.
How often are grants
made?
One grant over multiple years. The most recent grant was made to executives in
October 2022, excluding retention rights granted to the Interim CEO (Retail).
What are the
performance
measures?
The majority of LTI rights awarded to executives are subject to a two-stage
performance test - an absolute and relative test - based on Premier’s TSR. Broadly,
TSR is the percentage growth achieved from an investment in ordinary shares over
the relevant testing period (assuming all dividends are reinvested).
The two-stage performance measure approach ensures that the LTI plan
operates as a key driver for performance whilst also providing an incentive to
executives.
The absolute test requires Premier to achieve a positive TSR over the testing
period. If the TSR is negative over the testing period, then the performance rights
lapse.
If the TSR is positive over the testing period, the relative test is undertaken, which
compares Premier’s TSR with the S&P/ASX200 excluding overseas companies
and companies classified in the Energy or Materials sector (“Comparison Peer
Group”). The Comparison Peer Group represents over 100 companies in the
ASX200, which reflects the Group’s competitors for both capital and talent. The
Comparator Peer Group consists of ASX200 companies, including companies
within the consumer discretionary, consumer staple and information technology
sectors.
Premier’s performance against the Comparison Peer Group measure is determined
according to its ranking against the Comparison Peer Group over the performance
period. The vesting schedule is as follows:
Target
Conversion ratio of rights to shares
available to vest under the TSR
performance condition
Below 50th percentile
0%
50th percentile
50%
Between 50th and 75th percentile
Pro Rata
75th percentile and above
100%
Premier Investments Limited 26
REMUNERATION REPORT (AUDITED) (CONTINUED)
3. EXECUTIVE REMUNERATION ARRANGEMENTS (CONTINUED)
3F. Detail of incentive plans (continued)
Long-term incentive (“LTI”) (continued)
What are the
performance measures
(continued)?
The absolute test (or gateway) ensures that shareholders and executives are
aligned in the goal of absolute wealth creation. The relative test provides alignment
between comparative shareholder return and reward for executives.
The performance rights under each tranche will lapse if the applicable performance
hurdles are not met (unless otherwise determined by the Board in its absolute
discretion).
Premier considers the suitability of the above performance conditions on a regular
basis.
How is performance
assessed?
TSR performance is calculated by an independent external advisor at the end of
each performance period.
Section 8 of this report, titled “Additional disclosures relating to rights and shares”,
provides details of performance rights granted, vested, exercised and lapsed during
the year.
When does the LTI
vest?
For rights issued in the most recent grant during 2022, the performance rights will
vest in accordance with the following schedule:
Tranche 1: LTI rights will be tested for vesting from 1 October 2022 to 1 October
2025 (being the 1st Vesting Date).
Tranche 2: LTI rights will be tested for vesting from 1 October 2022 to 1 October
2026 (being the 2nd Vesting Date).
Tranche 3: LTI rights will be tested for vesting from 1 October 2022 to 1 October
2027 (being the 3rd Vesting Date).
Performance rights have no opportunity to be re-tested.
How are grants treated
on termination?
Generally, all rights (whether vested or unvested) lapse and terminate on cessation
of employment.
May participants enter
into hedging
arrangements?
Executives are prohibited from entering into transactions to hedge or limit the
economic risk of the securities allocated to them under the LTI scheme, either
before vesting or after vesting while the securities are held subject to restriction.
Executives are only able to hedge securities that have vested but continue to be
subject to a trading restriction and a seven-year lock, with the prior consent of the
Board.
No employees have any hedging arrangements in place.
Are there restrictions
on disposals?
Once rights have been allocated, disposal of performance shares is subject to
restrictions whereby Board approval is required to sell shares granted within seven
years under the LTI plan.
Do participants receive
distributions or
dividends on unvested
LTI grants?
Participants do not receive distributions or dividends on unvested LTI grants.
Directors’ Report continued
27
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
4.1 REMUNERATION OF OUTGOING CEO (RETAIL), MR. MURRAY
Mr. Murray resigned as CEO (Retail) effective 15 September 2023 and resigned as Executive Director of Premier
effective 21 August 2023. In accordance with his contract of employment dated 27 April 2021, Mr. Murray was required
to provide 12 months’ notice of termination (“Notice Period”) if he resigned. The maximum amount of any payment in
lieu of the Notice Period based on Mr. Murray’s total fixed remuneration for a 12-month period was $2,000,000 gross,
less applicable tax. On 15 September 2023, Premier elected to provide Mr. Murray with a payment in lieu of the
relevant Notice Period.
Mr. Murray was not eligible to receive an FY24 STI award. As a result of the cessation of his employment, Mr. Murray’s
unvested once-off sign-on retention performance rights (100,000 rights) and his LTI rights (600,000 rights) lapsed.
Premier elected not to enforce post-employment restrictions which would restrict Mr. Murray from certain conduct in
competition with Premier.
4.2 FY24 REMUNERATION OF INTERIM CEO (RETAIL), MR. BRYCE
Mr. John Bryce was appointed as Interim CEO (Retail) and Chief Financial Officer, Just Group Limited, in August 2023,
with a further extension announced on 26 July 2024. The material terms of Mr. Bryce’s employment arrangement as
Interim CEO (Retail) and CFO as provided to the ASX on 26 July 2024, are summarised below:
Term of agreement
Mr. Bryce will continue in the position of Interim Chief Executive Officer (Retail) and Chief
Financial Officer until 25 July 2025, or when the Board appoints a new Chief Executive
Officer, whichever is earlier.
Fixed Remuneration
Mr Bryce will continue to receive $1,000,000 per annum during the period in which he is
engaged in the position of Interim CEO (Retail) and Chief Financial Officer.
Retention Bonus
The Company granted Mr. Bryce 25,000 performance rights as a retention award. The
performance rights will be tested, and if applicable, will vest on 25 July 2025.
Vesting of the performance rights is subject to Mr. Bryce being actively employed, and not
serving a period of notice at all times between the date of granting the performance rights
and the vesting date. If vested, each performance right is an entitlement to a fully paid
ordinary share of the Company (Performance Shares).
The performance rights are subject to the terms and conditions of the Company’s
Performance Rights Plan Rules (Rules). In accordance with the Rules, disposal of
Performance Shares is subject to restrictions whereby Board approval is required to sell
shares granted within 7 years.
5. EXECUTIVE SERVICE AGREEMENTS
Remuneration and other terms of employment for KMP and other executives are formalised in written service
agreements (with the exception of Ms. Meyer, whose relevant terms of employment are set out below). Material
provisions of the service agreements are set out below:
Start date
Term of
agreement
Review period
Notice period
required from
Premier
Notice period
required from
employee
Mr. Bryce
13 Dec 2016
Ongoing
Annual
12 months
12 months *
Ms. Meyer
4 Feb 2019
Ongoing
Annual
12 months
12 months
* If Mr. Bryce gives notice of termination, then his notice period may be extended to delay the date on which his
termination becomes effective, by a period of up to six months.
Premier Investments Limited 28
REMUNERATION REPORT (AUDITED) (CONTINUED)
6. NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS
Determination of fees and maximum aggregate Non-Executive Director Remuneration
The Board seeks to set Non-Executive Director fees at a level which provides the Group with the ability to attract and
retain Non-Executive Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
The Group’s constitution and the ASX listing rules specify that the Non-Executive Director maximum aggregate
remuneration shall be determined from time to time by a general meeting. The most recent determination of this kind
was at the 2023 Annual General Meeting held on 1 December 2023 when shareholders approved an aggregate
remuneration of an amount not exceeding $2,000,000 per year.
The Chairman of the Group, consistent with his past practice, has declined to accept any remuneration for his role as a
director or for his role on any committees.
Fee policy
Non-Executive Director’s fees consist of base fees and committee fees. The payment of committee fees recognises
the additional time commitment required by Non-Executive Directors who serve on Board committees.
Non-Executive Directors may be reimbursed for expenses reasonably incurred in attending to the Group’s affairs. Non-
Executive Directors do not participate in any incentive programs. Premier has not established any schemes for
retirement benefits for Non-Executive Directors (other than superannuation).
REMUNERATION REPORT (AUDITED) (CONTINUED)
7. REMUNERATION OF KEY MANAGEMENT PERSONNEL (KMP)
Details of the nature and amount of each element of compensation for services for KMP of the Group related to the financial year are as follows:
Short-term
Share based
2024
Salary/Fee/
Allowances
Cash
Superannuation
Long-term
incentives
Total
Performance
related
$
$
$
$
$
%
Non-Executive Directors
Mr. S. Lew
-
-
-
-
-
-
Mr. T. Antonie
160,000
-
-
-
160,000
-
Dr. D. Crean
180,113
-
19,887
-
200,000
-
Ms. S. Falzon
140,000
-
-
-
140,000
-
Ms. S Herman
140,000
-
-
-
140,000
-
Mr. H. D. Lanzer1
140,000
-
-
-
140,000
-
Mr. T.L. McCartney
360,000
-
-
-
360,000
-
Mr. M. R. I. McLeod
144,090
-
15,910
-
160,000
-
Ms. A Weiss2
79,032
-
-
-
79,032
-
Total Non-Executive Directors
1,343,235
-
35,797
-
1,379,032
-
Executives
-
-
Mr. R. Murray3
2,090,867
-
4,567
65,114
2,160,548
-
Mr. J. Bryce
959,709
-
27,610
650,155
1,637,474
40%
Ms. M. Meyer
409,390
125,000
30,610
217,121
782,121
44%
Total executives
3,459,966
125,000
62,787
932,390
4,580,143
TOTAL 2024
4,803,201
125,000
98,584
932,390
5,959,175
1 Mr. Lanzer’s director’s fees were paid to Arnold Bloch Leibler.
2 Ms. Weiss was appointed as a Non-Executive Director effective 4 December 2023.
3 Mr. Murray resigned as CEO (Retail) effective 15 September 2023. The above table includes payment made in lieu of Mr. Murray’s Notice Period, as described in section 4.1 of the
Remuneration Report. As a result of Mr. Murray ceasing employment, previously recognised Long-term Incentives expenses totalling $5,830,440 were reversed in FY24 due to the
vesting conditions not being met.
Directors’ Report continued
29
Annual Report 2024
Premier Investments Limited 30
REMUNERATION REPORT (AUDITED) (CONTINUED)
7. REMUNERATION OF KMP (CONTINUED)
Short-term
Share based
2023
Salary/Fee/
Allowances
Cash
Superannuation
Long-term
incentives
Total
Performance
related
$
$
$
$
$
%
Non-Executive Directors
Mr. S. Lew
-
-
-
-
-
-
Mr. T. Antonie
160,000
-
-
-
160,000
-
Dr. D. Crean
180,928
-
19,072
-
200,000
-
Ms. S. Falzon
140,000
-
-
-
140,000
-
Ms. S Herman
140,000
-
-
-
140,000
-
Mr. H. D. Lanzer1
140,000
-
-
-
140,000
-
Mr. T.L. McCartney
360,000
-
-
-
360,000
-
Mr. M. R. I. McLeod
144,742
-
15,258
-
160,000
-
Total Non-Executive Directors
1,265,670
-
34,330
-
1,300,000
Executives
Mr. R. Murray
1,973,520
750,000
25,468
4,261,494
7,010,482
71%
Mr. J. Bryce
624,568
-
25,468
129,335
779,371
17%
Ms. M. Meyer
374,532
50,000
25,468
162,842
612,842
35%
Total executives
2,972,620
800,000
76,404
4,553,671
8,402,695
TOTAL 2023
4,238,290
800,000
110,734
4,553,671
9,702,695
1 Mr. Lanzer’s director’s fees were paid to Arnold Bloch Leibler.
Directors’ Report continued
31
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
8. ADDITIONAL DISCLOSURES RELATING TO RIGHTS AND SHARES OF KMP
a) Rights awarded, vested and lapsed during the year:
The table below discloses the number of performance rights granted to KMP as remuneration for the financial
year ended 27 July 2024, as well as the number of rights vested during the year:
Terms and Conditions
2024
Rights granted
during the year
No.
Grant date
Fair value per
right at grant date
$
Expiry and
Exercise date
Rights vested
No.
Mr. R. Murray
-
Dec-21
-
-
50,000
Mr. J. Bryce
-
May-20
-
-
17,032
25,000
Aug-23
$21.11
-
25,000
25,000
Jul-24
$30.80
-
-
Ms. M. Meyer
-
-
-
-
-
700,000 rights lapsed during the financial year ended 27 July 2024 in relation to Mr. Murray.
b) Value of rights awarded, exercised and lapsed during the year:
2024
Value of rights granted
during the year
$
Value of rights exercised
during the year
$
Remuneration consisting of
rights for the year
%
Mr. R. Murray
-
1,272,500
-
Mr. J. Bryce
1,297,750
1,240,887
40%
There were no alterations to the terms and conditions of rights awarded as remuneration since their award date.
The value of rights exercised during the year represent the intrinsic value of the rights based on the share price on
the relevant day of vesting.
c) Shares issued on exercise of rights:
2024
Shares issued
No
Paid per share
$
Unpaid per share
$
Alterations to terms and conditions
of rights awarded since award date
Mr. R. Murray
50,000
-
-
No
Mr. J. Bryce
42,032
-
-
No
d) Rights holdings of KMP:
2024
Balance at
29 July 2023
Granted as
remuneration
Rights
exercised
Lapsed
Balance at
27 July 2024
(not exercisable)
Mr. R. Murray
750,000
-
(50,000)
(700,000)
-
Mr. J. Bryce
55,351
50,000
(42,032)
-
63,319
Ms. M. Meyer
45,000
-
-
-
45,000
Rights granted to KMP were made in accordance with the provisions of the Group’s Performance Rights Plan.
Premier Investments Limited 32
REMUNERATION REPORT (AUDITED) (CONTINUED)
8. ADDITIONAL DISCLOSURES RELATING TO RIGHTS AND SHARES OF KMP (CONTINUED)
e) Number of Ordinary Shares held in Premier Investments Limited by KMP:
2024
Balance at
29 July 2023
Movement in
shareholdings
Balance at
27 July 2024
NON-EXECUTIVE DIRECTORS
Mr. S. Lew *
4,437,699
-
4,437,699
Mr. T. Antonie
5,001
-
5,001
Dr. D.M. Crean
-
-
-
Ms. S. Falzon
-
-
-
Ms. S. Herman
11,500
-
11,500
Mr. H.D. Lanzer
27,665
-
27,665
Mr. T.L. McCartney
-
-
-
Mr. M.R.I. McLeod
28,186
-
28,186
Ms. A Weiss
-
-
-
EXECUTIVES
Mr. R. Murray**
50,000
(50,000)
-
Mr. J. Bryce
23,417
42,032
65,449
Ms. M. Meyer
20,000
-
20,000
TOTAL
4,603,468
(7,968)
4,595,500
* Mr. Lew is an associate of Century Plaza Investments Pty. Ltd. and Metrepark Pty. Ltd (Associated Entities). The Associated
Entities, collectively, have a relevant interest in 59,804,731 (2023: 59,804,731) shares in the company. However, Mr. Lew does not
have a relevant interest in the shares in the company held by the Associated Entities.
** Mr. Murray resigned as CEO (Retail) effective 15 September 2023 and ceased being a KMP as of that date.
9. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KMP
AND THEIR RELATED PARTIES
Mr. Lanzer is the managing partner of the legal firm Arnold Bloch Leibler. Group companies use the services
of Arnold Bloch Leibler from time to time. Legal services totalling $3,221,654 (2023: $1,695,213), including
Mr. Lanzer's Director fees, GST and disbursements were invoiced by Arnold Bloch Leibler to the Group, with
$972,623 (2023: $234,282) remaining outstanding at year-end. The fees paid for these services were at
arm's length and on normal commercial terms.
Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year, lease payments totalling $240,167 (2023:
$240,167) including GST was paid to Loch Awe Pty Ltd, with $nil outstanding rent payments at year-end
(2023: $nil). The payments were at arm’s length and on normal commercial terms.
Mr. Lew is a director of Voyager Distributing Company Pty Ltd. During the year, purchases totalling
$18,821,591 (2023: $25,652,581) including GST have been made by Group companies from Voyager
Distributing Co. Pty Ltd, with $3,101,224 (2023: $3,820,631) remaining outstanding at year-end. The
purchases were all at arm’s length and on normal commercial terms.
Directors’ Report continued
33
Annual Report 2024
REMUNERATION REPORT (AUDITED) (CONTINUED)
9. ADDITIONAL DISCLOSURES RELATING TO TRANSACTIONS AND BALANCES WITH KMP
AND THEIR RELATED PARTIES (CONTINUED)
Mr. Lew is a director of Century Plaza Trading Pty. Ltd. The Company and Century Plaza Trading Pty Ltd are
parties to a Services Agreement to which Century Plaza Trading agrees to provide certain administrative
services to the company to the extent required and requested by the company. The Company is required to
reimburse Century Plaza Trading for costs it incurs in providing the company with the services under the
Service Agreement. The company reimbursed a total of $632,500 (2023: $434,500) costs including GST
incurred by Century Plaza Trading Pty Ltd, with $nil (2023: $nil) outstanding at year-end.
Ballook Pty Ltd is a company associated with Mr Lew. During the year, Just Group Limited entered into a
property lease for warehousing space in Footscray. The lease commencement date was 1 July 2024, with
an expiry date of 31 October 2026. The annual rent agreed to is $1,155,000 inclusive of GST, and Just
Group Limited is responsible for all outgoings in relation to the area leased. The lease was entered into at
arm’s length and on normal commercial terms. The lease is accounted for under AASB 16 Leases in the
financial statements.
Amounts recognised in the financial report at the reporting date in relation to other transactions:
i) Amounts included within Assets and Liabilities
2024
$’000
Non-Current Assets
Right of Use Asset
2,000
Non-Current Liabilities
Lease liabilities
1,274
Current Liabilities
Trade and other payables
4,074
Lease liabilities
803
ii) Amounts included within Profit or Loss
2024
$’000
Expenses
Purchases/ Cost of goods sold
17,275
Depreciation of non-current assets
291
Finance costs
14
Legal fees
2,929
Other expenses
575
Total expenses
21,084
Auditor’s Independence Declaration
Premier Investments Limited 34
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Audit or’s independence declarat ion t o t he direct ors of Premier
Invest ment s Limit ed
As lead auditor for the audit of the financial report of Premier Investments Limited for the financial
year ended 27 July 2024, I declare to the best of my knowledge and belief, there have been:
a.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit;
b.
No contraventions of any applicable code of professional conduct in relation to the audit; and
c.
No non-audit services provided that contravene any applicable code of professional conduct in
relation to the audit.
This declaration is in respect of Premier Investments Limited and the entities it controlled during the
financial year.
Ernst & Young
Glenn Carmody
Partner
24 September 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
For the 52 weeks ended 27 July 2024 and 29 July 2023
Statement of Comprehensive Income
35
Annual Report 2024
CONSOLIDATED
NOTES
2024
$’000
2023
$’000
Revenue from contracts with customers
4
1,595,326
1,643,502
Other revenue
4
22,243
19,022
Total revenue
1,617,569
1,662,524
Other income
4
1,892
2,029
Total revenue and other income
1,619,461
1,664,553
Changes in inventories
(597,294)
(621,011)
Employee expenses
(385,294)
(383,091)
Lease rental expenses
5
(36,127)
(43,756)
Depreciation and impairment of non-current assets
5
(166,042)
(165,222)
Advertising and direct marketing
(25,028)
(24,569)
Finance costs
5
(30,176)
(16,513)
Other expenses
(67,822)
(59,118)
Total expenses
(1,307,783)
(1,313,280)
Share of profit of associates
19
42,411
30,864
Profit from continuing operations before income tax
354,089
382,137
Income tax expense
6
(96,167)
(111,059)
Net profit for the period attributable to owners
257,922
271,078
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss
Net (loss) gain on cash flow hedges
23
(578)
491
Foreign currency translation
23
(339)
5,814
Net movement in other comprehensive income of associates
23
(3,664)
4,809
Income tax on items of other comprehensive loss (income)
6
173
(147)
Other comprehensive (loss) income which may be reclassified
to profit or loss in subsequent periods, net of tax
(4,408)
10,967
Items not to be reclassified subsequently to profit or loss
Net fair value gain on listed equity investment
23
-
29,165
Income tax on items of other comprehensive income
6
-
(17,356)
Other comprehensive income not to be reclassified to profit or
loss in subsequent periods, net of tax
-
11,809
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO THE OWNERS
253,514
293,854
Earnings per share from continuing operations attributable to
the ordinary equity holders of the parent:
- basic, profit for the year (cents per share)
7
161.78
170.31
- diluted, profit for the year (cents per share)
7
160.79
168.59
The accompanying notes form an integral part of this Statement of Comprehensive Income.
Statement of Financial Position
As at 27 July 2024 and 29 July 2023
Premier Investments Limited 36
CONSOLIDATED
NOTES
2024
$’000
2023
$’000
ASSETS
Current assets
Cash and cash equivalents
20
409,481
417,647
Trade and other receivables
9
15,725
12,678
Income tax receivable
2,930
12,214
Inventories
10
217,852
231,157
Other financial instruments
24
-
577
Other current assets
11
16,042
13,042
Total current assets
662,030
687,315
Non-current assets
Property, plant and equipment
17
147,142
128,495
Right-of-use assets
12
375,330
389,739
Intangible assets
18
822,785
822,363
Deferred tax assets
6
8,041
10,135
Investments in associates
19
508,205
458,775
Total non-current assets
1,861,503
1,809,507
TOTAL ASSETS
2,523,533
2,496,822
LIABILITIES
Current liabilities
Trade and other payables
13
120,509
127,264
Income tax payable
4,979
1,875
Lease liabilities
14
138,602
153,045
Provisions
15
39,335
39,505
Other current liabilities
16
12,057
14,307
Total current liabilities
315,482
335,996
Non-current liabilities
Interest-bearing liabilities
21
69,000
69,000
Deferred tax liabilities
6
60,372
57,346
Lease liabilities
14
270,670
277,287
Provisions
15
12,487
15,857
Total non-current liabilities
412,529
419,490
TOTAL LIABILITIES
728,011
755,486
NET ASSETS
1,795,522
1,741,336
EQUITY
Contributed equity
22
608,615
608,615
Reserves
23
18,204
25,696
Retained earnings
1,168,703
1,107,025
TOTAL EQUITY
1,795,522
1,741,336
The accompanying notes form an integral part of this Statement of Financial Position.
Statement of Cash Flows
For the 52 weeks ended 27 July 2024 and 29 July 2023
37
Annual Report 2024
CONSOLIDATED
NOTES
2024
$’000
2023
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
1,768,675
1,823,370
Payments to suppliers and employees (inclusive of GST)
(1,275,060)
(1,317,480)
Interest received
20,127
13,610
Borrowing costs paid
(8,468)
(5,742)
Interest on lease liabilities
(21,623)
(10,705)
Income taxes paid
(76,521)
(143,998)
NET CASH FLOWS FROM OPERATING ACTIVITIES
20(b)
407,130
359,055
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends received from listed equity investment
-
4,695
Dividends received from investments in associates
20,955
27,894
Payment for trademarks
(422)
(136)
Purchase of investments
(34,735)
(34,400)
Payment for property, plant and equipment
(28,739)
(16,315)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(42,941)
(18,262)
CASH FLOWS FROM FINANCING ACTIVITIES
Equity dividends paid
(196,244)
(237,244)
Payment of lease liabilities
(176,556)
(161,754)
Proceeds of borrowings
278,260
188,376
Repayment of borrowings
(278,260)
(188,376)
NET CASH FLOWS USED IN FINANCING ACTIVITIES
(372,800)
(398,998)
NET DECREASE IN CASH HELD
(8,611)
(58,205)
Cash at the beginning of the financial year
417,647
471,273
Net foreign exchange difference
445
4,579
CASH AT THE END OF THE FINANCIAL YEAR
20(a)
409,481
417,647
The accompanying notes form an integral part of this Statement of Cash Flows.
For the 52 weeks ended 27 July 2024 and 29 July 2023
Statement of Changes in Equity
Premier Investments Limited 38
CONSOLIDATED
CONTRIBUTED
EQUITY
CAPITAL
PROFITS
RESERVE
PERFORMANCE
RIGHTS
RESERVE
CASH FLOW
HEDGE
RESERVE
FOREIGN
CURRENCY
TRANSLATION
RESERVE
FAIR VALUE
RESERVE
RETAINED
PROFITS
TOTAL
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
At 30 July 2023
608,615
464
34,520
405
19,227
(28,920)
1,107,025
1,741,336
Net profit for the period
-
-
-
-
-
257,922
257,922
Other comprehensive income
-
-
-
(405)
(4,003)
-
-
(4,408)
Total comprehensive income for the period
-
-
-
(405)
(4,003)
-
257,922
253,514
Transactions with owners in their
capacity as owners:
Share-based payments
-
-
(3,084)
-
-
-
-
(3,084)
Dividends paid
-
-
-
-
-
-
(196,244)
(196,244)
Balance as at 27 July 2024
608,615
464
31,436
-
15,224
(28,920)
1,168,703
1,795,522
At 31 July 2022
608,615
464
27,313
61
8,604
(40,729)
1,073,191
1,677,519
Net profit for the period
-
-
-
-
-
-
271,078
271,078
Other comprehensive income
-
-
-
344
10,623
11,809
-
22,776
Total comprehensive income for the period
-
-
-
344
10,623
11,809
271,078
293,854
Transactions with owners in their
capacity as owners:
Share-based payments
-
-
7,207
-
-
-
-
7,207
Dividends paid
-
-
-
-
-
-
(237,244)
(237,244)
Balance as at 29 July 2023
608,615
464
34,520
405
19,227
(28,920)
1,107,025
1,741,336
The accompanying notes form an integral part of this Statement of Changes in Equity
Notes to the Financial Statements
For the 52 weeks ended 27 July 2024 and 29 July 2023
39
Annual Report 2024
1
GENERAL INFORMATION
The financial report contains the consolidated financial statements of the consolidated entity, comprising
Premier Investments Limited (the ‘parent entity’) and its wholly owned subsidiaries (‘the Group’) for the
52 weeks ended 27 July 2024. The financial report was authorised for issue by the Directors on
24 September 2024.
Premier Investments Limited is a for profit company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Securities Exchange. The nature of the operations and principal activities
of the Group are described in the Directors’ Report.
The notes to the financial statements have been organised into the following sections:
(i)
Other material group accounting policies: Summarises the basis of financial statement preparation and
other accounting policies adopted in the preparation of these consolidated financial statements. Specific
accounting policies are disclosed in the note to which they relate.
(ii)
Group performance: Contains the notes that focus on the results and performance of the Group.
(iii) Operating assets and liabilities: Provides information on the Group’s assets and liabilities used to
generate the Group’s performance.
(iv) Capital invested: Provides information on the capital invested which allows the Group to generate its
performance.
(v)
Capital structure and risk management: Provides information on the Group’s capital structure and
summarises the Group’s Risk Management policies.
(vi) Group structure: Contains information in relation to the Group’s structure and related parties.
(vii) Other disclosures: Summarises other disclosures which are required in order to comply with Australian
Accounting Standards and other authoritative pronouncements.
2
OTHER MATERIAL GROUP ACCOUNTING POLICIES
The consolidated financial report is prepared for the 52 weeks from 30 July 2023 to 27 July 2024.
Below is a summary of material group accounting policies applicable to the Group which have not been
disclosed elsewhere. The notes to the financial statements, which contain detailed accounting policy notes,
should be read in conjunction with the below Group accounting policies.
(a) BASIS OF FINANCIAL REPORT PREPARATION
The financial report is a general-purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial report has been prepared on a
historical cost basis, except for other financial instruments, which have been measured at fair value as
explained in the relevant accounting policies throughout the notes.
The financial report is presented in Australian dollars and all values are rounded to the nearest thousand
dollars ($’000), unless otherwise stated, as the Company is of a kind referred to in ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191, dated 24 March 2016.
(b) STATEMENT OF COMPLIANCE
The financial report complies with Australian Accounting Standards and International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Premier Investments Limited 40
2
OTHER MATERIAL GROUP ACCOUNTING POLICIES (CONTINUED)
(c) BASIS OF CONSOLIDATION
The consolidated financial statements are those of the consolidated entity, comprising Premier
Investments Limited and its wholly owned subsidiaries as at the end of each financial year. A list of the
Group’s subsidiaries is included in note 26.
Subsidiaries are entities that are controlled by the Group. Control is achieved when the Group has:
-
Power over the investee;
-
Exposure, or rights, to variable returns from its involvement with the investee, and
-
The ability to use its power over the investee to affect its returns.
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
Investments in subsidiaries held by Premier Investments Limited are accounted for at cost in the separate
financial statements of the parent entity less any impairment losses. Dividends received from subsidiaries
are recorded as a component of other revenue in the separate statement of comprehensive income of the
parent entity, and do not impact the recorded cost of the investment.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when
the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.
(d) COMPARATIVE AMOUNTS
The current reporting period, 30 July 2023 to 27 July 2024, represents 52 weeks and the comparative
reporting period is from 31 July 2022 to 29 July 2023 which represents 52 weeks. From time to time,
management may change prior year comparatives to reflect classifications applied in the current year.
(e) SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Group’s consolidated financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts in the financial statements.
Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent
liabilities, revenue and expenses. Management bases its judgements and estimates on historical
experience and on other various factors it believes to be reasonable under the circumstances, the results
of which form the basis of the carrying values of assets and liabilities that are not readily apparent from
other sources.
Management has identified certain critical accounting policies for which significant judgements, estimates
and assumptions are required. These key judgements, estimates and assumptions have been disclosed as
part of the relevant notes to the financial statements. Actual results may differ from those estimated under
different assumptions and conditions and may materially affect financial results or the financial position
reported in future periods.
(f) OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
statement of financial position if there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities
simultaneously.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
41
Annual Report 2024
2
OTHER MATERIAL GROUP ACCOUNTING POLICIES (CONTINUED)
(g)
CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Group presents assets and liabilities in the statement of financial position based on current versus non-
current classification. An asset is current when it is:
-
Expected to be realised or intended to be sold in the normal operating cycle, or primarily held for the
purpose of trading, or is expected to be realised within twelve months after the reporting period, or;
-
Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as non-current. A liability is current when it is:
-
Expected to be settled in the normal operating cycle, or primarily held for the purpose of trading, or is
due to be settled within twelve months after the reporting period, or;
-
There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-
current.
(h) FOREIGN CURRENCY TRANSLATION
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). Both the
functional and presentation currency of the parent entity and its Australian subsidiaries is Australian
dollars.
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting date. All exchange differences
are taken to profit or loss in the statement of comprehensive income. Non-monetary items that are
measured in terms of historical cost in a foreign currency are translated using the exchange rates at the
dates of the initial transactions.
As at the reporting date the assets and liabilities of the overseas subsidiaries are translated into the
presentation currency of the parent entity at the rate of exchange ruling at the reporting date and the
statements of comprehensive income are translated at the weighted average exchange rates for the
period. Exchange variations resulting from the translations are recognised in the foreign currency
translation reserve in equity.
(i) GOODS AND SERVICES TAX (GST), INCLUDING OTHER VALUE-ADDED TAXES
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except:
-
When the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
-
Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash
flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the taxation authority.
Premier Investments Limited 42
2
OTHER MATERIAL GROUP ACCOUNTING POLICIES (CONTINUED)
(j) NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Changes in accounting policies, disclosures, standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year except for new
and amended Australian Accounting Standards and AASB Interpretations relevant to the Group and its
operations that are effective for the current annual reporting period.
The Group applied for the first-time certain standards and amendments, which are effective for annual
periods beginning on or after 1 January 2023 (unless otherwise stated). The Group has not early adopted
any other standard, interpretation or amendment that has been issued but is not yet effective
Definition of Accounting Estimates – Amendments to AASB 108
The amendments to AASB 8 clarify the distinction between changes in accounting estimates, changes in
accounting policies and the correction of errors. They also clarify how entities use measurement
techniques and inputs to develop accounting estimates.
The amendments did not have a material impact on the financial statements.
Disclosure of Accounting Policies - Amendments to AASB 101 and AASB Practice Statement 2
The amendments to AASB 101 and IFRS Practice Statement 2 Making Materiality Judgements provide
guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The
amendments aim to help entities provide accounting policy disclosures that are more useful by replacing
the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose
their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in
making decisions about accounting policy disclosures.
The amendments have had an impact on the Group’s disclosures of accounting policies, but not on the
measurement, recognition or presentation of any items in the Group’s financial statements.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to
AASB 112
The amendments to AASB 112 Income Tax narrow the scope of the initial recognition exception, so that it
no longer applies to transactions that give rise to equal taxable and deductible temporary differences such
as leases and decommissioning liabilities.
The amendments did not have a material impact on the financial statements.
International Tax Reform – Pillar Two Model Rules – Amendments to AASB 112
The amendments to AASB 112 have been introduced in response to the OECD’s BEPS Pillar Two rules
and include:
-
A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the
jurisdictional implementation of the Pillar Two model rules; and
-
Disclosure requirements for affected entities to help users of the financial statements better
understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly
before its effective date.
The mandatory temporary exception – the use of which is required to be disclosed – applies immediately.
The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 January
2023, but not for any interim periods ending on or before 31 December 2023.
The amendments did not have a material impact on the financial statements.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
43
Annual Report 2024
2
OTHER MATERIAL GROUP ACCOUNTING POLICIES (CONTINUED)
(j) NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Accounting Standards and Interpretations issued but not yet effective
Recently issued or amended Australian Accounting Standards and Interpretations that have been
identified as those which may be relevant to the Group in future reporting periods, but are not yet effective,
have not been early adopted by the Group for the reporting period ended 27 July 2024. The Group does
not anticipate that the below amended standards and interpretations will have a material impact on the
Group, unless otherwise stated below:
- Amendments to AASB 101: Classification of Liabilities as Current or Non-current
- AASB 2014-10: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture.
- Amendments to AASB7 & AASB9: Classification and Measurement of Financial Instruments.
-
Presentation and Disclosures in Financial Statement - In June 2024, the AASB issued AASB 18
Presentation and Disclosure in Financial Statement. The Group is assessing the impact of this
standard which is not expected to change the recognition and measurement of items in the financial
statements but may affect presentation and disclosure in the financial statements, including introducing
new categories and subtotals in the statement of profit or loss, requiring the disclosure of
management-defined performance measures, and changing the grouping of information in the financial
statements.
Premier Investments Limited 44
GROUP PERFORMANCE
3
OPERATING SEGMENTS
Identification of operating segments
The Group determines and presents operating segments based on the information that is internally
provided and used by the chief operating decision maker in assessing the performance of the Group and
in determining the allocation of resources.
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. The operating segments are identified by management based on the
nature of the business conducted, and for which discrete financial information is available and reported to
the chief operating decision maker on at least a monthly basis.
Segment results that are reported to the chief operating decision maker include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise
mainly of corporate assets, head office expenses and income tax assets and liabilities.
Reportable Segments
Retail
The retail segment represents the financial performance of a number of speciality retail fashion chains.
Investment
The investment segment represents investments in securities for both long and short term gains, dividend
income and interest.
Accounting policies
The key accounting policies used by the Group in reporting segments internally are the same as those
contained in these financial statements.
Income tax expense
Income tax expense is calculated based on the segment operating net profit using the Group’s effective
income tax rate.
It is the Group’s policy that if items of revenue and expense are not allocated to operating segments then
any associated assets and liabilities are also not allocated to the segments. This is to avoid asymmetrical
allocations within segments which management believe would be inconsistent.
Segment capital expenditure
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
The table on the following page presents revenue and profit information for operating segments for the
periods ended 27 July 2024 and 29 July 2023.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
45
Annual Report 2024
GROUP PERFORMANCE
3
OPERATING SEGMENTS (CONTINUED)
(A) OPERATING SEGMENTS
RETAIL
INVESTMENT
ELIMINATION
CONSOLIDATED
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,595,326 1,643,502
-
-
-
- 1,595,326 1,643,502
Interest revenue
10,533
5,202
11,477
8,960
-
-
22,010
14,162
Other revenue
180
165
197,053
202,195 (197,000) (197,500)
233
4,860
Other income
1,892
2,029
-
-
-
-
1,892
2,029
Total revenue and other
income
1,607,931
1,650,898
208,530
211,155
(197,000)
(197,500)
1,619,461
1,664,553
Total revenue per the statement of comprehensive income
1,619,461 1,664,553
RESULTS
Depreciation
14,803
15,793
1,507
1,505
-
-
16,310
17,298
Depreciation – right-of-
use asset
153,659
144,583
-
-
(3,927)
(1,659)
149,732
142,924
Impairment of intangible
asset brand names
-
-
-
5,000
-
-
-
5,000
Interest expense
26,993
13,726
3,856
3,052
(673)
(265)
30,176
16,513
Share of profit of
associates
-
-
42,411
30,864
-
-
42,411
30,864
Profit before income
tax expense
313,940
352,515
236,971
232,050
(196,822)
(202,428)
354,089
382,137
Income tax expense
(96,167) (111,059)
Net profit after tax per the statement of comprehensive income
257,922
271,078
RETAIL
INVESTMENT
ELIMINATION
CONSOLIDATED
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
2024
$’000
2023
$’000
ASSETS AND LIABILITIES
Segment assets
1,016,035 1,022,307
1,610,111 1,568,007 (102,613)
(93,492) 2,523,533 2,496,822
Segment liabilities
589,948
617,744
152,988
143,469
(14,925)
(5,727)
728,011
755,486
Capital expenditure
34,375
20,606
-
-
-
-
34,375
20,606
Premier Investments Limited 46
GROUP PERFORMANCE
3
OPERATING SEGMENTS (CONTINUED)
(B) GEOGRAPHIC AREAS OF OPERATION
AUSTRALIA
NEW ZEALAND
ASIA
EUROPE
ELIMINATION CONSOLIDATED
2024
$’000
2024
$’000
2024
$’000
2024
$’000
2024
$’000
2024
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,258,284
157,414
72,655
106,973
-
1,595,326
Other revenue and income
59,074
1,778
316
51
(37,084)
24,135
Total revenue and other
income
1,317,358
159,192
72,971
107,024
(37,084)
1,619,461
Segment non-current assets
1,716,630
42,731
18,281
36,217
47,644
1,861,503
Capital Expenditure
29,349
1,811
826
2,389
-
34,375
AUSTRALIA
NEW ZEALAND
ASIA
EUROPE
ELIMINATION CONSOLIDATED
2023
$’000
2023
$’000
2023
$’000
2023
$’000
2023
$’000
2023
$’000
REVENUE AND OTHER INCOME
Revenue from contracts
with customers
1,284,730
160,713
90,204
107,855
-
1,643,502
Other revenue and income
49,170
519
127
(17)
(28,748)
21,051
Total revenue and other
income
1,333,900
161,232
90,331
107,838
(28,748)
1,664,553
Segment non-current assets
1,684,972
39,941
14,519
27,486
42,589
1,809,507
Capital expenditure
18,102
1,559
710
235
-
20,606
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
47
Annual Report 2024
GROUP PERFORMANCE
CONSOLIDATED
2024
$’000
2023
$’000
4
REVENUE AND OTHER INCOME
REVENUE
Revenue from contracts with customers
1,595,326
1,643,502
(Disaggregated revenue from contracts with customers is
presented in note 3B, Operating Segments)
OTHER REVENUE
Dividends received from listed equity investment
-
4,695
Sundry revenue
233
165
Interest received
22,010
14,162
TOTAL OTHER REVENUE
22,243
19,022
TOTAL REVENUE
1,617,569
1,662,524
OTHER INCOME
Insurance proceeds
440
1,866
Income from wholesale partners
1,318
97
Other
134
66
TOTAL OTHER INCOME
1,892
2,029
TOTAL REVENUE AND OTHER INCOME
1,619,461
1,664,553
REVENUE RECOGNITION ACCOUNTING POLICY
Revenue recognition occurs at the point in time when control of the goods is transferred to the customer, generally
at the point of sale or on delivery of the goods.
The Group estimates the value of expected customer returns that will arise as a result of the Group’s returns policy,
which entitles the customer to a refund of returned unused products within the specified timeframe for the respective
brands. At the same time, the Group recognises a right of return asset, being the former carrying amount of the
inventory, less any expected costs to recover the goods the Group expects to be returned by customers as a result
of the returns policy.
The Group operates certain loyalty programmes, which allow customers to accumulate points when products are
purchased, and which can be redeemed for free or discounted product once a minimum number of points have
been accumulated. Loyalty points give rise to a separate performance obligation providing a material right to the
customer, therefore a portion of the transaction price is allocated to the loyalty programme based on the relative
stand-alone selling prices.
The Group recognises a contract liability upon the sale of gift cards and recognises revenue when the customer
redeems the gift card, and the Group fulfils its performance obligation. The Group also recognises revenue on the
portion of unredeemed gift cards for which redemption is unlikely, known as gift card breakage. Gift card breakage
is estimated and recognised as revenue in proportion to the pattern of rights exercised by customers. On expiry of
the gift card, any unused funds are recognised in full as breakage.
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using
the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset.
Premier Investments Limited 48
GROUP PERFORMANCE
CONSOLIDATED
NOTES
2024
$’000
2023
$’000
5
EXPENSES
LEASE RENTAL EXPENSES
Variable lease expenses
8,354
12,647
Other lease expenses
27,773
32,541
COVID-19 related rent concessions
-
(1,432)
NET LEASE RENTAL EXPENSES
36,127
43,756
DEPRECIATION AND IMPAIRMENT OF NON-CURRENT
ASSETS
Depreciation of property, plant and equipment
17
16,310
17,298
Depreciation of right-of-use assets
12
149,732
142,924
Impairment of intangible asset brand names
18
-
5,000
TOTAL DEPRECIATION AND IMPAIRMENT OF NON-
CURRENT ASSETS
166,042
165,222
FINANCE COSTS
Interest on lease liabilities
14
21,623
10,705
Interest on bank loans and overdraft
8,553
5,808
TOTAL FINANCE COSTS
30,176
16,513
OTHER EXPENSES INCLUDE:
Net loss on disposal of property, plant and equipment
141
132
Loss on investment in associate resulting from share issue
3,097
703
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
49
Annual Report 2024
GROUP PERFORMANCE
CONSOLIDATED
2024
$’000
2023
$’000
6
INCOME TAX
The major components of income tax expense are:
(a)
INCOME TAX RECOGNISED IN PROFIT OR LOSS
CURRENT INCOME TAX
Current income tax charge
82,998
99,688
Adjustment in respect of current income tax of previous years
-
2,070
DEFERRED INCOME TAX
Relating to origination and reversal of temporary differences
13,169
9,301
INCOME TAX EXPENSE REPORTED IN THE STATEMENT
OF COMPREHENSIVE INCOME
96,167
111,059
(b)
STATEMENT OF CHANGES IN EQUITY
Deferred income tax related to items credited directly to equity:
Net deferred income tax on movements on cash-flow hedges
(173)
147
Net deferred income tax on unrealised gain (loss) on listed
equity investment at fair value
-
17,356
INCOME TAX EXPENSE (BENEFIT) REPORTED IN EQUITY
(173)
17,503
(c) RECONCILIATION BETWEEN TAX EXPENSE AND THE
ACCOUNTING PROFIT BEFORE TAX MULTIPLIED BY THE
GROUP’S APPLICABLE AUSTRALIAN INCOME TAX RATE
Accounting profit before income tax
354,089
382,137
At the Parent Entity’s statutory income tax rate of
30% (2023: 30%)
106,227
114,641
Adjustment in respect of current income tax of previous years
-
2,070
Expenditure not allowable for income tax purposes
238
3,702
Effect of different rates of tax on overseas income
(2,249)
(3,776)
Income not assessable for tax purposes
(8,110)
(5,697)
Other
61
119
AGGREGATE INCOME TAX EXPENSE
96,167
111,059
Premier Investments Limited 50
GROUP PERFORMANCE
CONSOLIDATED
2024
$’000
2023
$’000
6
INCOME TAX (CONTINUED)
(d) RECOGNISED DEFERRED TAX ASSETS AND LIABILITIES
DEFERRED TAX RELATES TO THE FOLLOWING:
Foreign currency balances
1,140
163
Potential capital gains tax on financial investments
(77,189)
(72,343)
Deferred gains and losses on financial instruments
-
(173)
Inventory provisions
354
537
Lease arrangements
9,678
7,018
Employee provisions
11,312
10,762
Property, plant and equipment
(31)
2,004
Other provisions
2,177
3,365
Other
228
1,456
NET DEFERRED TAX LIABILITIES
(52,331)
(47,211)
REFLECTED IN THE STATEMENT OF FINANCIAL
POSITION AS FOLLOWS:
Deferred tax assets
8,041
10,135
Deferred tax liabilities
(60,372)
(57,346)
NET DEFERRED TAX LIABILITIES
(52,331)
(47,211)
INCOME TAX ACCOUNTING POLICY
Income tax expense comprises current tax (amounts payable or receivable within 12 months) and deferred tax
(amounts payable or receivable after 12 months). Tax expense is recognised in profit or loss, unless it relates to
items that have been recognised in equity as part of other comprehensive income or directly in equity. In this
instance, the related tax expense is also recognised in other comprehensive income or directly in equity.
Current income tax
Current income tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from or paid to the tax authorities based on the current and prior period taxable income. The tax
rates and tax laws used to calculate tax amounts are those that are enacted or substantially enacted by the
reporting date.
Deferred income tax
Deferred income tax is recognised on temporary differences at the reporting date between the tax base of the
assets and liabilities and their carrying amounts for financial reporting purposes based on the expected manner
of recovery of the carrying value of an asset or liability.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantially enacted at the reporting date.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
51
Annual Report 2024
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
INCOME TAX ACCOUNTING POLICY (CONTINUED)
Deferred income tax liabilities are recognised for all temporary differences except:
-
When the deferred income tax liability arises from the initial recognition of an asset or liability in a
transaction that is not a business combination, at the time of the transaction, affects neither the accounting
profit nor the taxable profit or loss: and
-
When the taxable temporary difference is associated with investments in subsidiaries, associates and
interest in joint ventures, and the timing of the reversal of the temporary differences can be controlled and it
is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised, except:
-
When the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is
not a business combination, at the time of the transaction affects neither the accounting profit nor taxable
profit;
-
When the deductible temporary difference is associated with investments in subsidiaries, associates and
interest in joint ventures, in which case the deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available to utilise the deferred tax asset.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Tax assets and tax liabilities are offset only if a legally enforceable right exists to set off and the tax assets and
tax liabilities relate to the same taxable entity and the same taxation authority.
Tax consolidation
Premier Investments Limited and its wholly owned Australian controlled entities have implemented a tax
consolidation group. The head entity, Premier Investments Limited and the controlled entities continue to
account for their own current and deferred tax amounts. The Group has applied the Group allocation approach
to determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax
consolidated group. The agreement provides for the allocation of income tax liabilities between the entities
should the head entity default on its tax payment obligations. At reporting date the possibility of default is
remote.
In addition to its own current and deferred tax amounts, Premier Investments Limited also recognises the
current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax
credits assumed from controlled entities in the tax consolidated group.
KEY ACCOUNTING ESTIMATES AND JUDGEMENTS
Deferred tax assets are recognised for deductible temporary differences as management considers that it is
probable that future taxable profits will be available to utilise those temporary differences.
Premier Investments Limited 52
GROUP PERFORMANCE
6
INCOME TAX (CONTINUED)
KEY ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits together with future tax planning
strategies.
Assumptions about the generation of future taxable profits depend on management's estimates of future cash
flows. These depend on estimates of future sales volumes, operating costs, capital expenditure, dividends and
other capital management transactions. Judgements are also required about the application of income tax
legislation.
These judgements and assumptions are subject to risk and uncertainty, hence there is a possibility that
changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and
deferred tax liabilities recognised in the statement of financial position and the amount of other tax losses and
temporary differences not yet recognised. In such circumstances, some or all of the carrying amounts of
recognised deferred tax assets and liabilities may require adjustment, resulting in a corresponding credit or
charge to profit or loss in the statement of comprehensive income.
CONSOLIDATED
2024
$’000
2023
$’000
7
EARNINGS PER SHARE
The following reflects the income and share data used in the
calculation of basic and diluted earnings per share:
Net profit for the period
257,922
271,078
NUMBER OF
SHARES
‘000
NUMBER OF
SHARES
‘000
Weighted average number of ordinary shares used in
calculating:
- basic earnings per share
159,429
159,166
- diluted earnings per share
160,414
160,796
There have been no other conversions to, calls of, or subscriptions for ordinary shares or issues of potential
ordinary shares since the reporting date and before the completion of this financial report.
EARNINGS PER SHARE ACCOUNTING POLICY
Basic earnings per share are calculated as net profit attributable to members of the parent divided by the
weighted average number of ordinary shares.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for costs of
servicing equity, the after tax effect of dividends and interest associated with dilutive potential ordinary shares that
have been recognised as expenses, and other non-discretionary changes in revenue or expenses during the
period that would result from the dilution of potential ordinary shares, divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
53
Annual Report 2024
GROUP PERFORMANCE
CONSOLIDATED
2024
$’000
2023
$’000
8
A) DIVIDENDS
DIVIDENDS APPROVED AND/ OR PAID
Interim approved and paid during the year:
Interim ordinary franked dividends:
2024: 63 cents per share (2023: 54 cents)
100,569
85,981
Special franked dividends:
2024: nil (2023: 16 cents)
-
25,476
Final approved and paid during the year:
Final ordinary franked dividends:
2023: 60 cents per share (2022: 54 cents)
95,675
85,981
Special franked dividends:
2023: nil (2022: 25 cents)
-
39,806
TOTAL DIVIDENDS FOR THE YEAR
196,244
237,244
DIVIDENDS APPROVED AND NOT RECOGNISED AS A
LIABILITY:
Final franked dividend for 2024:
70 cents per share (2023: 60 cents)
111,761
95,675
The Directors of Premier Investments Limited approved a final ordinary dividend in respect of the 2024
financial year. The total amount of the final dividend is $111,761,000 (2023: $95,675,000) which represents a
fully franked ordinary dividend of 70 cents per share (2023: 60 cents per share).
CONSOLIDATED
2024
$’000
2023
$’000
B) FRANKING CREDIT BALANCE
The amount of franking credits available for the subsequent
financial year are:
Franking account balance as at the end of the financial
year at 30% (2023: 30%)
324,698
333,611
Franking (debits) credits that will arise from the settlement
of income tax as at the end of the financial year
4,979
(12,214)
Franking debits that will be used on the payment of
dividends subsequent to the end of the financial year
(47,898)
(40,956)
TOTAL FRANKING CREDIT BALANCE
281,779
280,441
The tax rate at which paid dividends have been franked is 30% (2023: 30%). Dividends approved will be
franked at the rate of 30% (2023: 30%).
Premier Investments Limited 54
OPERATING ASSETS AND LIABILITIES
CONSOLIDATED
2024
$’000
2023
$’000
9
TRADE AND OTHER RECEIVABLES (CURRENT)
Sundry debtors
15,725
12,678
TOTAL CURRENT TRADE AND OTHER RECEIVABLES
15,725
12,678
(a) Impairment losses
Receivables are non-interest-bearing and are generally on 30 to 60 day terms. An allowance for credit losses is
recognised based on the expected credit loss from the time the financial asset is initially recognised. Bad debts
are written off when identified. No material allowance for credit losses has been recognised by the Group during
the financial year ended 27 July 2024 (2023: $nil). During the year, no material bad debt expense (2023: $nil)
was recognised. It is expected that sundry debtor balances will be received when due.
(b) Fair value
Due to the short-term nature of these receivables, their carrying value is considered to approximate their fair
value.
TRADE AND OTHER RECEIVABLES ACCOUNTING POLICY
Trade and other receivables are classified as non-derivative financial assets and are recognised initially at
their transaction value. After initial measurement, these assets are measured at amortised cost, less any
allowance for any expected credit losses.
CONSOLIDATED
2024
$’000
2023
$’000
10 INVENTORIES
Finished goods
217,852
231,157
TOTAL INVENTORIES AT COST
217,852
231,157
INVENTORIES ACCOUNTING POLICY
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and conditions are accounted for as follows:
-
Finished goods - purchase cost plus a proportion of the purchasing department, freight, handling and
warehouse costs incurred to deliver the goods to the point of sale.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated direct
costs necessary to make the sale.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
55
Annual Report 2024
OPERATING ASSETS AND LIABILITIES
CONSOLIDATED
2024
$’000
2023
$’000
11 OTHER ASSETS (CURRENT)
Deposits and prepayments
16,042
13,042
TOTAL OTHER CURRENT ASSETS
16,042
13,042
12 RIGHT-OF-USE ASSETS
Opening balance
389,739
195,558
Additions
19,900
8,861
Remeasurements
115,673
325,100
Depreciation expense
(149,732)
(142,924)
Exchange differences
(250)
3,144
TOTAL RIGHT-OF-USE ASSETS
375,330
389,739
RIGHT-OF-USE ASSETS ACCOUNTING POLICY
The Group recognises right-of-use assets at the commencement date of the lease, being the date that the
underlying asset is available for use. Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date of the lease less any lease incentives received and an
estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the
site on which it is located or restoring the underlying asset to the condition required by the terms and conditions
of the lease, unless those costs are incurred to produce inventories. Unless the Group is reasonably certain to
obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are
depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use
assets are subject to impairment.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
Impairment of right-of-use assets
The carrying values of the right-of-use assets are reviewed for impairment annually. If an indication of
impairment exists, and where the carrying value of the asset exceeds the estimated recoverable amount, the
assets or cash-generating units (CGU) are written down to their recoverable amount. The recoverable amount
is the greater of fair value less costs of disposal and value-in-use. Value-in-use refers to an asset’s value based
on the expected future cash flows arising from its continued use, discounted to present value using a post-tax
discount rate that reflect current market assessments of the risks specific to the CGU.
The recoverable amount was estimated on an individual store basis, as this has been identified as the CGU of
the Group’s retail segment.
No impairment loss was recognised in relation to the Group’s right-of-use assets during the current financial
year (2023: $nil).
Premier Investments Limited 56
OPERATING ASSETS AND LIABILITIES
CONSOLIDATED
2024
$’000
2023
$’000
13 TRADE AND OTHER PAYABLES (CURRENT)
Trade creditors
58,903
56,779
Other creditors and accruals
61,606
70,485
TOTAL CURRENT TRADE AND OTHER PAYABLES
120,509
127,264
(a) Fair values
Due to the short-term nature of these payables, their carrying values approximate their fair values.
TRADE AND OTHER PAYABLES ACCOUNTING POLICY
Trade and other payables are recognised and carried at original invoice cost, which is the fair value of the
consideration to be paid in the future for goods and services received whether or not billed to the Group.
CONSOLIDATED
2024
$’000
2023
$’000
14 LEASE LIABILITIES
Opening balance
430,332
239,281
Additions
25,727
11,335
Remeasurements
108,058
328,962
Interest expense
21,623
10,705
Payments
(176,556)
(161,754)
COVID-19 related rent concessions
-
(1,432)
Exchange rate differences
88
3,235
TOTAL LEASE LIABILITIES
409,272
430,332
COMPRISING OF:
Current lease liability
138,602
153,045
Non-current lease liability
270,670
277,287
TOTAL LEASE LIABILITIES
409,272
430,332
LEASE LIABILITIES ACCOUNTING POLICY
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate initially measured using the index or rate as at the commencement date, and amount expected
to be paid under residual value guarantees. The variable lease payments which are not included in the
measurement of the lease liability are recognised as an expense in the period in which the event or condition
that triggers the payment occurs.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
57
Annual Report 2024
OPERATING ASSETS AND LIABILITIES
14 LEASE LIABILITIES (CONTINUED)
LEASE LIABILITIES ACCOUNTING POLICY (CONTINUED)
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date, if the rate implicit in the lease cannot be readily determined, using inputs such as
government bond rates for the lease period and the Group’s expected borrowing margin. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the in-substance fixed lease payments, a change in the
assessment to purchase the underlying asset, or a change in the amounts expected to be payable under a
residual value guarantee.
The Group applies the low-value assets recognition exemption to leases of certain office equipment that are
considered of low value. Lease payments on low-value assets are recognised as a lease expense on a straight-
line basis over the lease term.
Significant judgement in determining the lease term
The Group determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.
After the lease commencement date, the Group reassesses the lease term if there is a significant event or
change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option
to renew.
Where a lease enters holdover, the Group estimates the expected lease term based on reasonably certain
information available as at balance date. Any adjustments required due to changes in estimates or entering into
a new lease agreement are recognised in the period in which the adjustments are made.
Significant judgement in determining the incremental borrowing rate
The Group has applied judgement to determine the incremental borrowing rate, which affects the amount of
lease liabilities and right-of-use assets recognised. The Group assesses and applies the incremental borrowing
rate on a lease by lease basis at the relevant lease commencement date, based on the term of the lease. The
incremental borrowing rate is determined using inputs including the Group’s expected lending facility margin
and applicable government bond rates at the time of entering into the lease, which reflects the expected lease
term.
COVID-19 related rent concessions
The Group has adopted the practical expedient issued by the Australian Accounting Standards Board whereby
it has not accounted for rent concessions which are a direct consequence of the COVID-19 pandemic as lease
modifications. Instead, the Group recognised these concessions in the statement of comprehensive income as
a variable amount as and when incurred.
The practical expedient may be applied where the following conditions apply:
-
The changed lease payments were substantially the same or less than the payments prior to the rent
concession;
-
The reductions only affect payments which fall due before 30 June 2022; and
-
There has been no substantive change in the terms and conditions of the lease.
Premier Investments Limited 58
OPERATING ASSETS AND LIABILITIES
CONSOLIDATED
2024
$’000
2023
$’000
15 PROVISIONS
CURRENT
Employee entitlements – Annual Leave
18,618
17,904
Employee entitlements – Long Service Leave
13,365
12,371
Provision for make-good in relation to leased premises
5,073
5,925
Refund liability
2,088
2,088
Other provisions
191
1,217
TOTAL CURRENT PROVISIONS
39,335
39,505
NON-CURRENT
Employee entitlements – Long Service Leave
3,142
2,981
Provision for make-good in relation to leased premises
8,670
10,514
Other provisions
675
2,362
TOTAL NON-CURRENT PROVISIONS
12,487
15,857
MOVEMENT IN PROVISIONS
Provision for make-good in relation to leased premises
Opening balance
16,439
16,117
Charged to profit or loss
-
592
Utilised during the period
(192)
(270)
Unused amounts reversed during the period
(2,504)
-
CLOSING BALANCE (CURRENT AND NON-CURRENT)
13,743
16,439
PROVISIONS ACCOUNTING POLICIES
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time-value of money is material, provisions are determined by discounting the expected future
cash flows at a pre-tax discount rate that reflects the risks specific to the liability and the time value of money.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance
cost.
EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES
Current annual leave
The provisions for employee entitlements to wages, salaries and annual leave (which are expected to be settled
wholly within 12 months of the reporting date) represent the amount which the Group has a present obligation to
pay, resulting from employees’ services provided up to the reporting date. The provisions have been calculated at
nominal amounts based on current wage and salary rates and include related on-costs.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
59
Annual Report 2024
OPERATING ASSETS AND LIABILITIES
15 PROVISIONS (CONTINUED)
EMPLOYEE ENTITLEMENTS ACCOUNTING POLICIES (CONTINUED)
Long service leave
The liability for long service leave (which are not expected to be settled wholly within 12 months of the reporting
date) is recognised in the provision for employee benefits and measured as the present value of expected future
payments to be made in respect of services provided by employees up to the reporting date. Consideration is
given to expected future wage and salary levels, experience of employee departures, and periods of service.
Related on-costs have also been included in the liability.
Expected future payments are discounted using market yields at the reporting date on high quality corporate
bonds with terms to maturity that match as closely as possible the estimated cash outflow.
Retirement benefit obligations
All employees of the Group are entitled to benefits from the Group’s superannuation plan on retirement,
disability or death. The Group operates a defined contribution plan. Contributions to the plan are recognised as
an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash
refund or a reduction in the future payment is made available.
PROVISION FOR MAKE-GOOD IN RELATION TO STORE PLANT AND EQUIPMENT ACCOUNTING POLICY
A provision has been recognised in relation to make-good costs arising from contractual obligations in lease
agreements, where the Group has such a present obligation. The provision recognised represents the present
value of the estimated expenditure required to remove these store plant and equipment.
CONSOLIDATED
2024
$’000
2023
$’000
16 OTHER LIABILITIES
CURRENT
Deferred income
12,057
14,307
TOTAL CURRENT
12,057
14,307
DEFERRED INCOME ACCOUNTING POLICY
Unredeemed gift cards are expected to be largely redeemed within a year.
Premier Investments Limited 60
CAPITAL INVESTED
17 PROPERTY, PLANT AND EQUIPMENT
CONSOLIDATED
LAND
$’000
BUILDINGS
$’000
PLANT AND
EQUIPMENT
$’000
CAPITAL WORKS
IN PROGRESS
$’000
TOTAL
$’000
AT 27 JULY 2024
Cost
21,953
59,577
487,222
24,965
593,717
Accumulated depreciation and
impairment
-
(11,885)
(434,690)
-
(446,575)
NET CARRYING AMOUNT
21,953
47,692
52,532
24,965
147,142
RECONCILIATIONS:
Carrying amount at beginning of
the financial year
21,953
49,197
52,876
4,469
128,495
Additions
-
-
8,296
26,079
34,375
Transfers between classes
-
-
5,583
(5,583)
-
Depreciation
-
(1,505)
(14,805)
-
(16,310)
Disposals
-
-
(141)
-
(141)
Exchange differences
-
-
723
-
723
Carrying amount at end of the
financial year
21,953
47,692
52,532
24,965
147,142
AT 29 JULY 2023
Cost
21,953
59,577
478,116
4,469
564,115
Accumulated depreciation and
impairment
-
(10,380)
(425,240)
-
(435,620)
NET CARRYING AMOUNT
21,953
49,197
52,876
4,469
128,495
RECONCILIATIONS:
Carrying amount at beginning of
the financial year
21,953
50,702
44,460
8,198
125,313
Additions
-
-
5,726
14,882
20,608
Transfers between classes
-
-
18,611
(18,611)
-
Depreciation
-
(1,505)
(15,793)
-
(17,298)
Disposals
-
-
(132)
-
(132)
Exchange differences
-
-
4
-
4
Carrying amount at end of the
financial year
21,953
49,197
52,876
4,469
128,495
LAND AND BUILDINGS
The land and buildings with a combined carrying amount of $69,645,000 (2023: $71,150,000) have been
pledged to secure certain interest-bearing borrowings of the Group (refer to note 21).
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
61
Annual Report 2024
CAPITAL INVESTED
17 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
PROPERTY, PLANT AND EQUIPMENT ACCOUNTING POLICY
Property, plant and equipment is stated at historical cost less accumulated depreciation and any
accumulated impairment losses. Depreciation is calculated on a systematic basis over the estimated useful
life of the asset as follows:
-
Buildings
40 years
-
Store plant and equipment
3 to 10 years
-
Other plant and equipment
2 to 20 years
Freehold land is not depreciated.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
Estimation of useful lives of assets
The estimation of useful lives of assets has been based on historical experience as well as manufacturers’
warranties (for plant and equipment). In addition, the condition of the assets is assessed at least once per
year and considered against the remaining useful life. Adjustments to useful lives are made when
considered necessary and are accounted for as a change in accounting estimate, in accordance with AASB
108 Accounting Policies, Changes in Accounting Estimates and Errors. Depreciation methods used reflect
the pattern in which the asset’s future economic benefits are expected to be consumed and are reviewed at
least at each financial year-end. Adjustments to depreciation methods are made when considered
necessary and are accounted for as a change in accounting estimate, in accordance with AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors.
Impairment testing of Property, Plant and Equipment and key accounting estimates and assumptions
The carrying values of property, plant and equipment are reviewed for impairment annually. If an indication
of impairment exists, and where the carrying value of the asset exceeds the estimated recoverable amount,
the assets or cash-generating units (CGU) are written down to their recoverable amount. The recoverable
amount is the greater of fair value less costs of disposal and value-in-use. Value-in-use refers to an asset’s
value based on the estimated future cash flows arising from its continued use, discounted to present value
using a post-tax discount rate that reflect current market assessments of the risks specific to the CGU.
These value-in-use calculations use cash flow projections based on financial estimates covering a period of
up to five years, discounting using a post-tax discount rate of 10.5% (2023: 10.5%).
If an asset does not generate largely independent cash inflows, the recoverable amount is determined for
the CGU to which the asset belongs. The recoverable amount was estimated for certain items of plant and
equipment on an individual store basis, as this has been identified as the CGU of the Group’s retail
segment.
No impairment loss was recognised during the current financial year (2023: $nil).
Premier Investments Limited 62
CAPITAL INVESTED
18 INTANGIBLES
RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND END OF THE PERIOD
CONSOLIDATED
GOODWILL
$’000
BRAND NAMES
$’000
TRADEMARKS
$’000
TOTAL
$’000
YEAR ENDED 27 JULY 2024
As at 30 July 2023 net of accumulated
amortisation and impairment
477,085
341,179
4,099
822,363
Trademark registrations
-
-
422
422
As at 27 July 2024 net of accumulated
amortisation and impairment
477,085
341,179
4,521
822,785
AS AT 27 JULY 2024
Cost (gross carrying amount)
477,085
376,179
4,521
857,785
Accumulated amortisation and impairment
-
(35,000)
-
(35,000)
NET CARRYING AMOUNT
477,085
341,179
4,521
822,785
YEAR ENDED 29 JULY 2023
As at 31 July 2022 net of accumulated
amortisation and impairment
477,085
346,179
3,963
827,227
Impairment of brand names
-
(5,000)
-
(5,000)
Trademark registrations
-
-
136
136
As at 29 July 2023 net of accumulated
amortisation and impairment
477,085
341,179
4,099
822,363
AS AT 29 JULY 2023
Cost (gross carrying amount)
477,085
376,179
4,099
857,363
Accumulated amortisation and impairment
-
(35,000)
-
(35,000)
NET CARRYING AMOUNT
477,085
341,179
4,099
822,363
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
63
Annual Report 2024
CAPITAL INVESTED
18 INTANGIBLES (CONTINUED)
GOODWILL ACCOUNTING POLICY
Goodwill acquired in a business combination is initially measured at cost, being the excess of the cost of the
business combination over the Group’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less any
accumulated impairment losses. Goodwill is not amortised but is subject to impairment testing.
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances
indicate that the carrying value may be impaired. Goodwill acquired in a business combination is, from the
date of acquisition, allocated to each of the Group’s cash-generating units (CGUs) that are expected to
benefit from the synergies of the combination. Impairment is determined by assessing the recoverable
amount of the CGU to which the goodwill relates.
Where the recoverable amount of the CGU is less than the carrying amount, an impairment loss is
recognised. Impairment losses recognised for goodwill are not subsequently reversed.
OTHER INTANGIBLE ASSETS (excluding goodwill) ACCOUNTING POLICY
Intangible assets acquired separately are initially measured at cost. Intangible assets acquired in a business
combination are initially recognised at fair value. Following initial recognition, intangible assets are carried at
cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
A summary of the key accounting policies applied to the Group’s intangible assets are as follows:
Brands
Trademarks & Licences
Useful life assessment?
Indefinite
Indefinite
Method used?
Not amortised or revalued
Not amortised or revalued
Internally generated or
acquired?
Acquired
Acquired
Impairment test/recoverable
amount testing
Annually or more frequently if
there are indicators of impairment
Annually or more frequently if
there are indicators of impairment
Brand names, trademarks and licences are assessed as having an indefinite useful life, as this reflects
management’s intention to continue to operate these to generate net cash inflows into the foreseeable
future. These assets are not amortised but are subject to impairment testing.
Intangible assets are tested for impairment where an indicator of impairment exists, or in the case of
indefinite life intangibles, impairment is tested annually and where an indicator of impairment exists.
Where the carrying amount of an intangible asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. The recoverable amount is the higher of the asset’s
value-in-use and fair value less costs of disposal. Value-in use refers to an asset’s value based on the
expected future cash flows arising from its continued use, discounted to present value using a post-tax
discount rate that reflect current market assessments of the risks specific to the asset.
If an asset does not generate largely independent cash inflows, the recoverable amount is determined for
the CGU to which the asset belongs.
Premier Investments Limited 64
CAPITAL INVESTED
18 INTANGIBLES (CONTINUED)
SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
The recoverable amounts of CGUs are determined based on the higher of value-in-use calculations or fair
value less costs of disposal. These calculations depend on management estimates and assumptions. In
particular, significant estimates and judgements are made in relation to the key assumptions used in
forecasting future cash flows and the expected growth rates used in these cash flow projections, as well as
the discount rates applied to these cash flows. Management assesses these assumptions each reporting
period and considers the potential impact of changes to these assumptions.
IMPAIRMENT TESTING OF GOODWILL
The key factors contributing to the goodwill relate to the synergies existing within the acquired business and
also synergies expected to be achieved as a result of combining Just Group Limited with the rest of the
Group. Accordingly, goodwill is assessed at a retail segment level, which is also an operating segment for the
Group.
The recoverable amount of the CGU has been determined based upon value-in-use calculations, using
estimated cash flow scenarios for a period of five years plus a terminal value.
The value-in-use calculations have been determined based on a scenario of cash flows using financial
estimates for the 2025 financial year (FY25) and are projected for a further four years (FY26 – FY29) based
on estimated growth rates. As part of the annual impairment test for goodwill, management assesses the
reasonableness of profit margin assumptions by reviewing historical cash flow projections as well as future
growth objectives.
The cash flow projections for FY25 are based on financial estimates approved by senior management and the
Board. These financial estimates are projected for a further four years based on average annual estimated
growth rates for FY26 to FY29 of 2.23% (2023: 2.15%). Cash flow estimates beyond the five year period have
been extrapolated using a growth rate ranging from 1.7% to 1.9% (2023: 1.7% to 1.9%), which reflects the
long-term growth expectations beyond the five year period.
The post-tax discount rate applied to these cash flow projections is 9.2% (2023: 9.6%). The discount rate has
been determined using the weighted average cost of capital which incorporates both the cost of debt and the
cost of capital and adjusted for risks specific to the CGU.
In determining possible scenarios of cash flows, management considered the reasonably possible changes in
estimated sales growth, estimated EBITDA and discount rates applied to the CGU to which goodwill relates.
These reasonably possible adverse change in key assumptions on which the recoverable amount is based
would not cause the carrying amount of the CGU to exceed its recoverable amount.
IMPAIRMENT TESTING OF BRAND NAMES
Brand names acquired through business combinations have been allocated to the following CGU groups
($’000) as no individual brand name is considered significant:
-
Casual wear - $153,975
-
Women’s wear - $137,744
-
Non Apparel - $49,460
The recoverable amounts of brand names acquired in a business combination have been determined on an
individual brand basis based upon value-in-use calculations. The value-in-use calculations have been
determined based upon the relief from royalty method using cash flow estimates for a period of five years plus
a terminal value.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
65
Annual Report 2024
CAPITAL INVESTED
18 INTANGIBLES (CONTINUED)
IMPAIRMENT TESTING OF BRAND NAMES (CONTINUED)
The recoverable amount of brand names has been determined based upon value-in-use calculations, using
estimated cash flow scenarios for a period of five years plus a terminal value. The value-in-use calculations
have been determined based on a scenario of cash flows using financial estimates for the 2025 financial year
(FY25) and are projected for a further four years (FY26 – FY29) based on estimated growth rates.
The cash flow projections for FY25 are based on financial estimates approved by senior management and the
Board. These financial estimates are projected for a further four years based on average annual estimated
growth rates for FY26 to FY29. These extrapolated growth rate ranges at which cash flows have been
estimated for the individual brands within each of the CGU groups were 2% to 2.5% (2023: 2% - 2.3%).
Cash flow estimates beyond the five year period have been extrapolated using a growth rate ranging from
1.7% to 1.9% (2023: 1.7% to 1.9%), which reflects the long-term growth expectations beyond the five year
period.
The post-tax discount rate applied to the cash flow projections for each of the three CGU groups is 8.2%
(2023: 8.5%). The discount rate has been determined using the weighted average cost of capital which
incorporates both the cost of debt and cost of capital and adjusted for risks specific to the CGU.
Royalty rates have been determined for each brand within the CGU groups by considering the brand’s history
and future expected performance. Factors such as the profitability of the brand, market share, brand
recognition and general conditions in the industry have also been considered in determining an appropriate
royalty rate for each brand. Consideration is also given to the industry norms relating to royalty rates by
analysing market derived data for comparable brands and by considering the notional royalty payments as a
percentage of the divisional earnings before interest and taxation generated by the division in which the brand
names are used. Net royalty rates applied across the three CGU groups range between 3.5% and 8%
(2023: 3.5% and 8%).
In addition, management has considered reasonably possible adverse changes in key assumptions applied to
brands within the relevant CGU groups, each of which have been subjected to sensitivities. Key assumptions
relate to estimated sales growth, net royalty rates and discount rates applied.
A brand within the Casual Wear CGU group with a carrying value of $77.2 million, indicated sensitivity to
possible adverse changes to the post-tax discount rate applied to the cash flow estimates, as well as
indicating sensitivity to a possible adverse change in sales growth expectations. Reasonably possible
changes in key assumptions relating to a 5% reduction in estimated sales growth projections, or a discount
rate increase of 50 basis points may lead to a potential impairment loss of up to $3.6 million, which is not
considered material to the overall recoverable amount of the CGU.
The brand names were acquired through the acquisition of the Just Group in 2008, and the historical carrying
values assigned to the brands were reflective of trading performance and the retail environment over 15 years
ago. The accounting standards do not allow for a re-allocation of the carrying values of indefinite-life intangible
assets, therefore the significant value created within the collective portfolio of brands subsequent to 2008 is
not reflected in the historical carrying values of these intangible assets.
No impairment loss was recognised during the current financial year (2023: $5 million).
Premier Investments Limited 66
CAPITAL INVESTED
19 INVESTMENTS IN ASSOCIATES
CONSOLIDATED
2024
$’000
2023
$’000
Movements in carrying amounts
Carrying amount at the beginning of the financial year
458,775
312,201
Fair value of investment in Myer Holdings Limited on
commencement of equity accounting
-
117,372
Share of profit after income tax
42,411
30,864
(Loss) resulting from associate share issue
(3,097)
(703)
Share of other comprehensive income (loss)
(3,664)
4,810
Acquisition of additional shareholding in associate
34,735
22,125
Dividends received
(20,955)
(27,894)
TOTAL INVESTMENTS IN ASSOCIATES
508,205
458,775
Breville Group Limited
As at 27 July 2024, Premier Investments Limited holds 25.45% (2023: 25.56%) of Breville Group Limited
(“BRG”), a company incorporated in Australia whose shares are quoted on the Australian Securities
Exchange. The principal activities of BRG involves the innovation, development, marketing and distribution of
small electrical appliances.
There were no impairment losses relating to the investment in BRG and no capital commitments or other
commitments relating to the associate. The Group’s share of the profit after tax in its investment in BRG for
the year was $30,157,079 (2023: $28,169,165). As at 27 July 2024, the carrying amount of the Group’s
investment in BRG for the year was $347,173,278 (2023: $333,666,398), and the fair value of the Group’s
interest in BRG as determined based on the quoted market price was $981,472,577 (2023: $829,269,503).
During the period, a loss of $1,511,000 (29 July 2023: loss of $703,234) was recorded in the profit and loss
resulting from an issue of shares by BRG, and the corresponding impact on the Group’s method of equity
accounting. The Group received dividends amounting to $11,497,000 from BRG during the year (2023:
$10,950,000).
The financial year end date of BRG is 30 June. For the purpose of applying the equity method of
accounting, the financial statements of BRG for the year ended 30 June 2024 have been used. The
accounting policies applied by BRG in their financial statements materially conform to those used by the
Group for like transactions and events in similar circumstances.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
67
Annual Report 2024
CAPITAL INVESTED
19 INVESTMENTS IN ASSOCIATES (CONTINUED)
Breville Group Limited (Continued)
The following table illustrates summarised financial information relating to the Group’s investment in BRG:
EXTRACT OF BRG’S STATEMENT OF FINANCIAL POSITION
30 JUNE 2024
$’000
30 JUNE 2023
$’000
Current assets
764,010
820,818
Non-current assets
577,061
554,034
Total assets
1,341,071
1,374,852
Current liabilities
(337,944)
(321,772)
Non-current liabilities
(154,913)
(283,421)
Total liabilities
(492,857)
(605,193)
NET ASSETS
848,214
769,659
Group’s share of BRG net assets
215,870
196,725
EXTRACT OF BRG’S STATEMENT OF COMPREHENSIVE INCOME
30 JUNE 2024
$’000
30 JUNE 2023
$’000
Revenue
1,529,993
1,478,554
Profit after income tax
118,507
110,208
Other comprehensive income
(9,706)
20,262
Group’s share of BRG profit after income tax
30,157
28,169
Myer Holdings Limited
As at 27 July 2024, Metalgrove Pty Ltd, a subsidiary of Premier Investments Limited, holds 31.37% (2023:
25.79%) of Myer Holdings Limited (“MYR”), a company incorporated in Australia whose shares are quoted on
the Australian Securities Exchange. The principal activities of MYR involves the operation of a number of
department stores across Australia and through its online business. The Group commenced equity accounting
for its investment in MYR from 13 December 2022. As at 27 July 2024, the carrying amount of the Group’s
investment in MYR for the year was $161,031,710 (2023: $125,107,876), and the fair value of the Group’s
interest in MYR as determined based on the quoted market price was $215,302,030 (2023: $137,666,934).
There were no impairment losses relating to the investment in MYR and no capital commitments or other
commitments relating to the associate. The Group’s share of the profit after tax in its investment in MYR for
the year was $12,253,539 (2023: from 13 December 2022 to 29 July 2023: $2,694,541). During the period, a
loss of $1,586,354 (29 July 2023: nil) was recorded in the profit and loss resulting from an issue of shares by
MYR, and the corresponding impact on the Group’s method of equity accounting. The Group received total
dividends amounting to $9,457,331 during the year (2023: total dividends received: $21,639,000, of which
$16,944,000 was recorded against the investment in associate, and $4,695,000 was recorded in Other
Revenue, as this dividend was received prior to the equity accounting commencement date).
The financial year end date of MYR is 27 July 2024. For the purpose of applying the equity method of
accounting, the financial statements of MYR for the year ended 27 July 2024 have been used. The
accounting policies applied by MYR in their financial statements materially conform to those used by the
Group for like transactions and events in similar circumstances.
Premier Investments Limited 68
CAPITAL INVESTED
19 INVESTMENTS IN ASSOCIATES (CONTINUED)
Myer Holdings Limited (continued)
The following table illustrates summarised financial information relating to the Group’s investment in MYR:
EXTRACT OF MYR’S STATEMENT OF FINANCIAL POSITION
27 JULY 2024
$’000
29 JULY 2023
$’000
Current assets
584,400
585,400
Non-current assets
1,791,100
1,851,400
Total assets
2,375,500
2,436,800
Current liabilities
646,300
640,700
Non-current liabilities
1,474,200
1,555,600
Total liabilities
2,120,500
2,196,300
NET ASSETS
255,000
240,500
Group’s share of MYR net assets
79,994
62,025
EXTRACT OF MYR’S STATEMENT OF COMPREHENSIVE INCOME
27 JULY 2024
$’000
29 JULY 2023
$’000
Revenue
2,438,100
2,565,800
Profit after income tax
43,500
60,400
Other comprehensive income
(200)
(900)
Group’s share of MYR profit after income tax
12,254
2,695
INVESTMENTS IN ASSOCIATES ACCOUNTING POLICY
An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control
over those policies. The considerations made in determining significant influence are similar to those
necessary to determine control over subsidiaries.
The Group accounts for its investments in associates using the equity method of accounting in the
consolidated financial statements. Under the equity method, the investment in the associates is initially
recognised at cost. Thereafter, the carrying amount of the investment is adjusted to recognise the Group’s
share of profit after tax of the associate, which is recognised in profit or loss, and the Group’s share of other
comprehensive income, which is recognised in other comprehensive income in the statement of
comprehensive income.
Dividends received from the associate generally reduces the carrying amount of the investment. After
application of the equity method, the Group determines whether it is necessary to recognise an impairment
loss on its investment in an associate. At each reporting period, the Group determines whether there is
objective evidence that the investment in the associate is impaired. If there is such evidence, the Group
calculates the amount of impairment as the difference between the recoverable amount of the associate and
its carrying value, then recognises the impairment loss in profit or loss in the statement of comprehensive
income.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
69
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2024
$’000
2023
$’000
20 NOTES TO THE STATEMENT OF CASH FLOWS
(a)
RECONCILIATION OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
212,571
211,999
Short-term deposits
196,910
205,648
TOTAL CASH AND CASH EQUIVALENTS
409,481
417,647
(b)
RECONCILIATION OF NET PROFIT AFTER INCOME TAX
TO NET CASH FLOWS FROM OPERATIONS
Net profit for the period after tax
257,922
271,078
Adjustments for:
Depreciation and impairment
166,042
165,222
Share of profit of associates
(42,411)
(30,864)
Loss on investments in associates from share issue
3,097
703
Dividends received from listed equity investment
-
(4,695)
Borrowing costs
94
16
Net loss on disposal of property, plant and equipment
141
132
Share-based payments (benefit) expense
(3,084)
7,207
Movement in cash flow hedge reserve
(405)
344
Net exchange differences
(783)
1,235
Changes in assets and liabilities:
Increase in trade and other receivables
(3,047)
(1,652)
Increase in other current assets
(3,000)
(2,743)
Decrease (increase) in inventories
13,305
(6,765)
Decrease (increase) in other financial assets
577
(490)
Decrease in deferred tax assets
2,094
1,826
Decrease in provisions
(844)
(429)
Increase in deferred tax liabilities
3,026
6,745
Increase (decrease) in trade and other payables
4,267
(3,680)
Decrease in deferred income
(2,250)
(1,822)
Increase (decrease) in income tax payable
12,389
(42,313)
NET CASH FLOWS FROM OPERATING ACTIVITIES
407,130
359,055
Premier Investments Limited 70
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2024
$’000
2023
$’000
20 NOTES TO THE STATEMENT OF CASH FLOWS
(CONTINUED)
(c)
FINANCE FACILITIES
Working capital and bank overdraft facility
Used
-
-
Unused
-
-
-
-
Finance facility
Used
69,000
69,000
Unused
50,000
100,000
119,000
169,000
Bank guarantee facility
Used
-
-
Unused
-
-
-
-
Interchangeable facility
Used
3,667
4,184
Unused
9,333
8,816
13,000
13,000
Total facilities
Used
72,667
73,184
Unused
59,333
108,816
TOTAL
132,000
182,000
CASH AND CASH EQUIVALENTS ACCOUNTING POLICY
Cash and cash equivalents in the statement of financial position comprise cash on hand and in banks,
money market investments readily convertible to cash within two working days and short-term deposits with
an original maturity of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
71
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2024
$’000
2023
$’000
21 INTEREST-BEARING LIABILITIES
NON-CURRENT
Bank loans* unsecured
-
-
Bank loans ** secured
69,000
69,000
TOTAL INTEREST-BEARING LIABILITIES
69,000
69,000
* Bank loans are subject to a negative pledge and cross guarantee within the Just Group Ltd group. Premier Investments
Limited is not a participant or guarantor of the Just Group Ltd financing facilities.
** Premier Investments Limited obtained bank borrowings amounting to $69 million. A $19 million borrowing is secured by a
mortgage over Land and Buildings, representing the National Distribution Centre in Truganina, Victoria. This borrowing is
repayable in full at the end of 5 years, being January 2027. Premier Investments Limited obtained a further $50 million
borrowing which is secured by a mortgage over Land and Buildings, representing an office building in Melbourne, Victoria.
This borrowing was refinanced and is repayable in full at the end of 5 years, being December 2026.
(a) Fair values
The carrying values of the Group’s current and non-current interest-bearing liabilities approximate their fair
values.
(b) Defaults and breaches
During the current and prior years, there were no defaults or breaches on any of the loans.
(c) Changes in interest-bearing liabilities arising from financing activities
CONSOLIDATED
29 JULY 2023
$’000
CASH
FLOWS
$’000
OTHER
$’000
27 JULY 2024
$’000
Non-current interest-bearing liabilities
69,000
-
-
69,000
TOTAL INTEREST-BEARING LIABILITIES
69,000
-
-
69,000
‘Other’ includes the effect of the amortisation of the capitalised borrowing costs, which are amortised over
the life of the facility.
INTEREST-BEARING LIABILITIES ACCOUNTING POLICY
Interest-bearing liabilities are initially recognised at the fair value of the consideration received net of issue
costs associated with the borrowing.
After initial recognition, such items are subsequently measured at amortised cost using the effective interest
method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium
on settlement.
Fees paid on the establishment of loan facilities are amortised over the life of the facility while on-
going borrowing costs are expensed as incurred.
Premier Investments Limited 72
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2024
$’000
2023
$’000
22 CONTRIBUTED EQUITY
Ordinary share capital
608,615
608,615
NO. (‘000)
$‘000
(a)
MOVEMENTS IN SHARES ON ISSUE
Ordinary shares on issue 30 July 2023
159,225
608,615
Ordinary shares issued during the year (i)
433
-
Ordinary shares on issue at 27 July 2024
159,658
608,615
Ordinary shares on issue 31 July 2022
158,993
608,615
Ordinary shares issued during the year (i)
232
-
Ordinary shares on issue at 29 July 2023
159,225
608,615
Fully paid ordinary shares carry one vote per share and carry the rights to dividends.
(i)
A total of 433,799 ordinary shares (2023: 231,603) were issued in relation to the performance rights plan.
(b)
CAPITAL MANAGEMENT
The Group’s objective is to ensure the entity continues as a going concern as well as to maintain optimal
returns to shareholders. The Group also aims to maintain a capital structure that ensures the lowest cost of
capital available to the Group.
The capital structure of the Group consists of debt which includes interest-bearing borrowings, cash and cash
equivalents and equity attributable to the equity holders of Premier Investments Limited, comprising of
contributed equity, reserves and retained earnings.
The Group operates primarily through its two business segments, investments and retail. The investments
segment is managed and operated through the parent company. The retail segment operates through
subsidiaries established in their respective markets and maintains a central borrowing facility through a
subsidiary, to meet the retail segment’s funding requirements and to enable the Group to find the optimal debt
and equity balance.
The Group’s capital structure is reviewed on a periodic basis in the context of prevailing market conditions,
and appropriate steps are taken to ensure the Group’s capital structure and capital management initiatives
remain in line with the Board’s objectives.
(c)
EXTERNALLY IMPOSED CAPITAL REQUIREMENTS
Just Group Ltd, a subsidiary of Premier Investments Limited, is subject to a number of financial undertakings
as part of its financing facility agreement. These undertakings have been satisfied during the period.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
73
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2024
$’000
2023
$’000
23 RESERVES
RESERVES COMPRISE:
Capital profits reserve
464
464
Foreign currency translation reserve (a)
15,224
19,227
Cash flow hedge reserve (b)
-
405
Performance rights reserve (c)
31,436
34,520
Fair value reserve (d)
(28,920)
(28,920)
TOTAL RESERVES
18,204
25,696
(a)
FOREIGN CURRENCY TRANSLATION RESERVE
Nature and purpose of reserve
Reserve is used to record exchange differences arising from
the translation of the financial statements of foreign
subsidiaries.
- Movements in the reserve
Opening balance
19,227
8,604
Foreign currency translation of overseas subsidiaries
(339)
5,814
Net movement in associate entities’ reserves
(3,664)
4,809
CLOSING BALANCE
15,224
19,227
(b)
CASH FLOW HEDGE RESERVE
Nature and purpose of reserve
Reserve records the portion of the gain or loss on a hedging
instrument in a cash flow hedge that is determined to be an
effective hedge.
- Movements in the reserve
Opening balance
405
61
Net gain (loss) on cash flow hedges
168
(229)
Transferred to statement of financial position/
profit or loss
(746)
720
Deferred income tax movement on cash flow hedges
173
(147)
CLOSING BALANCE
-
405
Premier Investments Limited 74
CAPITAL STRUCTURE AND RISK MANAGEMENT
CONSOLIDATED
2024
$’000
2023
$’000
23 RESERVES (CONTINUED)
(c)
PERFORMANCE RIGHTS RESERVE
Nature and purpose of reserve
Reserve is used to record the cumulative amortised value of
performance rights issued to key senior employees, net of
the value of performance shares acquired under the
performance rights plan.
-
Movements in the reserve
Opening balance
34,520
27,313
Share-based payment expense (reversal)
(3,084)
7,207
CLOSING BALANCE
31,436
34,520
(d)
FAIR VALUE RESERVE
Nature and purpose of reserve
Reserve is used to record unrealised gains and losses on
fair value revaluation of listed equity investment at fair value.
-
Movements in the reserve
Opening balance
(28,920)
(40,729)
Unrealised gain on revaluation of listed investment
-
29,165
Net Deferred income tax movement on listed investment
-
(17,356)
CLOSING BALANCE
(28,920)
(28,920)
24 OTHER FINANCIAL INSTRUMENTS
CURRENT ASSETS
Derivatives designated as hedging instruments
Forward currency contracts – cash flow hedges
-
577
TOTAL CURRENT ASSETS
-
577
(a)
DERIVATIVE INSTRUMENTS USED BY THE GROUP
(i)
Forward currency contracts – cash flow hedges
The majority of the Group’s inventory purchases are denominated in US Dollars. In order to protect against
exchange rates movements, the Group manages its foreign currency exposure through a combination of
forward exchange contracts, spot rate contracts, natural hedges resulting from US Dollar income from its
wholesale channel, or utilising debt facilities to make US Dollar drawdowns.
The forward currency contracts are considered to be highly effective hedges as they are matched against
forecast inventory purchases and are timed to mature when payments are scheduled to be made. Any gain or
loss on the contracts attributable to the hedge risk are recognised in other comprehensive income and
accumulated in the hedge reserve in equity.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
75
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
24 OTHER FINANCIAL INSTRUMENTS (CONTINUED)
(a)
DERIVATIVE INSTRUMENTS USED BY THE GROUP (CONTINUED)
(i)
Forward currency contracts – cash flow hedges (continued)
At reporting date, the details of outstanding forward currency contracts are:
CONSOLIDATED
2024
$’000
2023
$’000
2024
2023
Buy USD / Sell AUD
NOTIONAL AMOUNTS $AUD
AVERAGE EXCHANGE RATE
Maturity < 6 months
-
11,600
-
0.6896
Maturity 6 – 12 months
-
-
-
-
Buy USD / Sell NZD
NOTIONAL AMOUNTS $NZD
AVERAGE EXCHANGE RATE
Maturity < 6 months
-
3,118
-
0.6466
Maturity 6 – 12 months
-
-
-
-
OTHER FINANCIAL INSTRUMENTS AND HEDGING ACCOUNTING POLICY
The Group uses derivative financial instruments such as forward currency contracts to hedge its foreign currency
risks. These derivative financial instruments are initially recognised at fair value on the date on which the derivative
contract is entered into and are subsequently remeasured at fair value at subsequent reporting dates.
Derivatives are carried as financial assets when their fair value is positive and as financial liabilities when their fair
value is negative. Any gains or losses arising from changes in the fair value of derivatives, except for those that
qualify as cash flow hedges and are considered to be effective, are taken directly to profit or loss for the period.
Cash flow hedges
Cash flow hedges are hedges of the Group’s exposure to variability in cash flows that is attributable to highly
probable future purchases as well as cash flows attributable to a particular risk associated with a recognised asset
or liability that is a firm commitment and that could affect the statement of comprehensive income. The Group’s
cash flow hedges that meet the strict criteria for hedge accounting are accounted for by recognising the effective
portion of the gain or loss on the hedging instrument directly in other comprehensive income and accumulated in the
cash flow hedge reserve in equity, while the ineffective portion due to counterparty credit risk is recognised in profit
or loss. Amounts taken to equity are reclassified out of equity and included in the measurement of the hedged
transaction (finance costs or inventory purchases) when the forecast transaction occurs.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its
designation as a hedge is revoked (due to being ineffective), amounts previously recognised in equity remain in
equity until the forecast transaction occurs.
Premier Investments Limited 76
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES
The Group’s principal financial instruments comprise cash and cash equivalents, derivative financial instruments,
receivables, payables, bank overdrafts and interest-bearing liabilities.
RISK EXPOSURES AND RESPONSES
The Group manages its exposure to key financial risks in accordance with Board-approved policies which are
reviewed annually and includes liquidity risk, foreign currency risk, interest rate risk and credit risk. The objective of
the policy is to support the delivery of the Group’s financial targets whilst protecting future financial security.
The Group uses different methods to measure and manage different types of risks to which it is exposed. These
include, monitoring levels of exposure to interest rate and foreign exchange risk and assessment of market
forecasts for interest rate and foreign exchange prices. Liquidity risk is monitored through development of future
cash flow forecast projections.
CREDIT RISK
The overwhelming majority of the Group’s sales are on cash terms with settlement within 24 hours. As such, the
Group’s exposure to credit risk is minimal. Receivable balances are monitored on an ongoing basis with the result
that the Group’s exposure to bad debts is not significant.
There are no significant concentrations of credit risk within the Group and financial instruments are spread
amongst a number of financial institutions.
With respect to credit risk arising mainly from cash and cash equivalents and certain derivative instruments, the
Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the
carrying amount of these instruments. Since the Group trades only with recognised creditworthy third parties,
there is no requirement for collateral by either party.
Credit risk for the Group also arises from financial guarantees that members of the Group act as guarantor. At 27
July 2024, the maximum exposure to credit risk of the Group is the amount guaranteed as disclosed in note 33.
INTEREST RATE RISK
The Group’s exposure to market interest rates relates primarily to its cash and cash equivalents that it holds and
interest-bearing liabilities.
At reporting date, the Group had the following mix of financial assets and liabilities exposed to variable interest
rate risk that are not designated in cash flow hedges:
CONSOLIDATED
NOTES
2024
$’000
2023
$’000
Financial Assets
Cash and cash equivalents
20
409,481
417,647
409,481
417,647
Financial Liabilities
Bank loans AUD
21
69,000
69,000
69,000
69,000
NET FINANCIAL ASSETS
340,481
348,647
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
77
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
INTEREST RATE RISK (continued)
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s objective of managing interest rate risk is to minimise the Group’s
exposure to fluctuations in interest rates that might impact its interest revenue, interest expense and cash flow.
The Group manages this by locking in a portion of its cash and cash equivalents into term deposits. The maturity
of term deposits is determined based on the Group’s cash flow forecast.
The Group manages its interest rate risk relating to interest-bearing liabilities by having access to both fixed and
variable rate debt which can be drawn down.
i)
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the portion of
cash and cash equivalents and interest-bearing liabilities affected. A 100 (2023:100) basis point increase and
decrease in Australian interest rates represents management's assessment of the reasonably possible change in
interest rates. The table indicates an increase or decrease in the Group’s profit after tax.
POST-TAX PROFIT TO
INCREASE (DECREASE) BY:
Impacts of reasonably possible movements:
2024
$’000
2023
$’000
CONSOLIDATED
+1.0% (100 basis points)
2,383
2,441
-1.0% (100 basis points)
(2,383)
(2,441)
Significant assumptions used in the interest rate sensitivity analysis include:
-
Reasonably possible movements in interest rates were determined based on the Group’s current credit rating
and mix of debt in Australian and foreign countries, relationships with financial institutions, the level of debt that
is expected to be renewed as well as a review of the last two years’ historical movements and economic
forecasters’ expectations.
-
The net exposure at reporting date is representative of what the Group was and is expecting to be exposed to in
the next twelve months.
-
The sensitivity analysis assumes all other variables are held constant, and the change in interest rates take
place at the beginning of the financial year and are held constant throughout the reporting period.
FOREIGN OPERATIONS
The Group has operations in Australia, New Zealand, Singapore, Hong Kong, Malaysia, The Republic of Ireland
and the United Kingdom. As a result, movements in the Australian Dollar and the currencies applicable to these
foreign operations affect the Group’s statement of financial position and results from operations. From time to
time the Group obtains New Zealand Dollar denominated financing facilities from a financial institution to provide
a natural hedge of the Group’s exposure to movements in the Australian Dollar and New Zealand Dollar
(AUD/NZD) on translation of the New Zealand statement of financial position. In addition, the Group, on occasion,
hedges its cash flow exposure to movements in the AUD/NZD. The Group also on occasion, hedges its cash flow
exposure to movements in the AUD/SGD, AUD/GBP, AUD/MYR and AUD/EUR.
Premier Investments Limited 78
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY TRANSACTIONS
The Group has exposures to foreign currencies principally arising from purchases by operating entities in
currencies other than their functional currency. Over 80% of the Group’s purchases are denominated in United
States Dollar (USD), which is not the functional currency of any Australian entities or any of the foreign operating
entities.
The Group considers its exposure to USD arising from the purchases of inventory to be a long-term and ongoing
exposure. In order to protect against exchange rate movements, the Group enters into forward exchange
contracts to purchase US Dollars, from time to time. These forward exchange contracts are designated as cash
flow hedges that are subject to movements through equity and profit or loss respectively as foreign exchange
rates move.
The Group’s foreign currency risk management policy provides guidelines for the term over which foreign
currency hedging will be undertaken for part or all of the risk. This term cannot exceed two years. Factors taken
into account include:
-
the implied market volatility for the currency exposure being hedged and the cost of hedging, relative to long-
term indicators;
-
the level of the base currency against the currency risk being hedged, relative to long-term indicators;
-
the Group’s strategic decision-making horizon; and
-
other factors considered relevant by the Board
The policy requires periodic reporting to the Audit and Risk Committee, and its application is subject to oversight
from the Chairman of the Audit and Risk Committee or the Chairman of the Board. The policy allows the use of
forward exchange contracts and foreign currency options.
At reporting date, the Group had the following exposures to movements in the United States Dollar (USD), New
Zealand Dollar (NZD), Singapore Dollar (SGD), Pound Sterling (GBP), Malaysian Ringgit (MYR), and Euro
(EUR):
2024
CONSOLIDATED
USD
$’000
NZD
$’000
SGD
$’000
GBP
$’000
MYR
$’000
EUR
$’000
FINANCIAL ASSETS
Cash and cash equivalents
4,514
27,395
14,040
25,796
7,924
825
Trade and other receivables
4,678
-
29
-
-
-
9,192
27,395
14,069
25,796
7,924
825
FINANCIAL LIABILITIES
Trade and other payables
(44,015)
(5,695)
(131)
(391)
-
-
NET EXPOSURE
(34,823)
21,700
13,938
25,405
7,924
825
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
79
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY TRANSACTIONS (CONTINUED)
2023
CONSOLIDATED
USD
$’000
NZD
$’000
SGD
$’000
GBP
$’000
MYR
$’000
EUR
$’000
FINANCIAL ASSETS
Cash and cash equivalents
163
30,240
21,120
24,378
8,548
990
Trade and other receivables
2,284
-
49
-
-
-
Derivative financial assets
577
-
-
-
-
-
3,024
30,240
21,169
24,378
8,548
990
FINANCIAL LIABILITIES
Trade and other payables
42,296
4,820
258
8,243
-
-
42,296
4,820
258
8,243
-
-
NET EXPOSURE
(39,272)
25,420
20,911
16,135
8,548
990
The Group has forward currency contracts designated as cash flow hedges that are subject to movements through
other comprehensive income and profit or loss respectively as foreign exchange rates move (refer to Note 24).
FOREIGN CURRENCY RISK
The following sensitivity is based on the foreign exchange risk exposures in existence at the reporting date:
POST-TAX PROFIT
HIGHER/(LOWER)
OTHER COMPREHENSIVE INCOME
HIGHER/(LOWER)
CONSOLIDATED
Impacts of reasonably possible
movements:
2024
$’000
2023
$’000
2024
$’000
2023
$’000
CONSOLIDATED
AUD/USD + 10%
3,166
3,619
-
(555)
AUD/USD – 10.0%
(3,869)
(4,432)
-
832
AUD/NZD + 10%
(1,973)
(2,311)
-
-
AUD/NZD – 10.0%
2,411
2,824
-
-
AUD/SGD + 10%
(1,267)
(1,901)
-
-
AUD/SGD – 10.0%
1,549
2,323
-
-
AUD/GBP + 10%
(2,310)
(1,467)
-
-
AUD/GBP – 10.0%
2,823
1,793
-
-
AUD/MYR + 10%
(720)
(777)
-
-
AUD/MYR – 10.0%
880
950
-
-
AUD/EUR + 10%
(75)
(90)
-
-
AUD/EUR – 10.0%
92
110
-
-
Premier Investments Limited 80
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FOREIGN CURRENCY RISK (CONTINUED)
Significant assumptions used in the foreign currency exposure sensitivity analysis include:
-
Reasonably possible movements in foreign exchange rates were determined based on a review of the last
two years historical movements and economic forecasters’ expectations.
-
The net exposure at reporting date is representative of what the Group was and is expecting to be exposed to
in the next twelve months from reporting date.
-
The effect on other comprehensive income is the effect on the cash flow hedge reserve.
-
The sensitivity does not include financial instruments that are non-monetary items as these are not
considered to give rise to currency risk.
LIQUIDITY RISK
Liquidity risk refers to the risk of encountering difficulties in meeting obligations associated with financial liabilities
and other cash flow commitments. Liquidity risk management is ensuring that there are sufficient funds available
to meet financial commitments in a timely manner and planning for unforeseen events which may curtail cash
flows and cause pressure on liquidity. The Group keeps its short-, medium- and long-term funding requirements
under constant review. Its policy is to have sufficient committed funds available to meet medium term
requirements, with flexibility and headroom to make acquisitions for cash in the event an opportunity should arise.
The Group has at reporting date, $212.6 million (2023: $212.0 million) cash held in deposit with 11am at call and
the remaining $196.9 million (2023: $205.6 million) cash held in deposit with maturity terms ranging from 30 to
190 days (2023: 30 to 220 days). Hence management believe there is no significant exposure to liquidity risk at
27 July 2024 and 29 July 2023.
The Group aims to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts and bank loans with a variety of counterparties.
At reporting date, the remaining undiscounted contractual maturities of the Group’s financial liabilities are:
CONSOLIDATED
FINANCIAL YEAR ENDED 27 JULY 2024
FINANCIAL YEAR ENDED 29 JULY 2023
CONSOLIDATED
MATURITY 0 - 12
MONTHS
$’000
MATURITY > 12
MONTHS
$’000
MATURITY 0 - 12
MONTHS
$’000
MATURITY > 12
MONTHS
$’000
FINANCIAL LIABILITIES
Trade and other payables
120,509
-
127,264
-
Bank loans
3,942
74,607
3,837
78,284
Lease liabilities
156,045
294,288
153,045
309,688
Forward currency contracts
-
-
14,718
-
280,496
368,895
298,864
387,972
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
81
Annual Report 2024
CAPITAL STRUCTURE AND RISK MANAGEMENT
25 FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES (CONTINUED)
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The Group measures financial instruments, such as derivatives and listed equity investments at fair value, at fair
value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place
in either the principal market for the asset or liability or, in the absence of a principal market, the most
advantageous market for the asset or liability, which is accessible to the Group.
In determining the fair value of an asset or liability, the Group uses market observable data, to the extent possible.
The fair value of financial assets and financial liabilities is based on market prices (where a market exists) or using
other widely accepted methods of valuation.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the following fair value hierarchy, based on the lowest level input that is significant to the fair value
measurement as a whole:
Level 1 – the fair value is calculated using quoted price in active markets for identical assets or liabilities.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market
data.
CONSOLIDATED
FINANCIAL YEAR ENDED 27 JULY 2024
FINANCIAL YEAR ENDED 29 JULY 2023
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 1
LEVEL 2
LEVEL 3
$’000
$’000
$’000
$’000
$’000
$’000
FINANCIAL ASSETS
Foreign Exchange Contracts
-
-
-
-
577
-
There have been no transfers between Level 1, Level 2 and Level 3 during the financial year.
At 27 July 2024 and 29 July 2023, the fair values of cash and cash equivalents, short-term receivables and
payables approximate their carrying values. The carrying value of interest-bearing liabilities is considered to
approximate the fair value, being the amount at which the liability could be settled in a current transaction between
willing parties.
Foreign exchange contracts are initially recognised in the statement of financial position at fair value on the date
which the contract is entered into, and subsequently remeasured to fair value. Foreign exchange contracts are
measured based on observable spot exchange rates, the yield curves of the respective currencies as well as the
currency basis spread between the respective currencies.
Premier Investments Limited 82
GROUP STRUCTURE
26 SUBSIDIARIES
The consolidated financial statements include that of Premier Investments Limited (ultimate parent entity) and the
subsidiaries listed in the following table. (* Indicates not trading as at the date of this report)
ENTITY NAME
COUNTRY OF INCORPORATION
2024 INTEREST
2023 INTEREST
Kimtara Investments Pty Ltd
Australia
100%
100%
Premfin Pty Ltd
Australia
100%
100%
Springdeep Investments Pty Ltd
Australia
100%
100%
Prempref Pty Ltd
Australia
100%
100%
Metalgrove Pty Ltd
Australia
100%
100%
Just Group Limited
Australia
100%
100%
Just Jeans Group Pty Limited
Australia
100%
100%
Just Jeans Pty Limited
Australia
100%
100%
Jay Jays Trademark Pty Limited
Australia
100%
100%
Just-Shop Pty Limited
Australia
100%
100%
Peter Alexander Sleepwear Pty Limited
Australia
100%
100%
Old Blues Pty Limited
Australia
100%
100%
Kimbyr Investments Limited
New Zealand
100%
100%
Jacqui E Pty Limited
Australia
100%
100%
Jacqueline-Eve Fashions Pty Limited *
Australia
100%
100%
Jacqueline-Eve (Hobart) Pty Limited *
Australia
100%
100%
Jacqueline-Eve (Retail) Pty Limited *
Australia
100%
100%
Jacqueline-Eve (Leases) Pty Limited *
Australia
100%
100%
Sydleigh Pty Limited *
Australia
100%
100%
Old Favourites Blues Pty Limited *
Australia
100%
100%
Urban Brands Retail Pty Ltd *
Australia
100%
100%
Portmans Pty Limited
Australia
100%
100%
Dotti Pty Ltd
Australia
100%
100%
Smiggle Pty Limited
Australia
100%
100%
Just Group International Pty Limited *
Australia
100%
100%
Smiggle Group Holdings Pty Limited *
Australia
100%
100%
Smiggle International Pty Limited *
Australia
100%
100%
Peter Alexander International Pty Ltd
Australia
100%
-
Peter Alexander Group Holdings Pty Ltd
Australia
100%
-
Smiggle Singapore Pte Ltd
Singapore
100%
100%
Just Group International HK Limited*
Hong Kong
100%
100%
Smiggle HK Limited*
Hong Kong
100%
100%
Just Group USA Inc.*
USA
100%
100%
Peter Alexander USA Inc.*
USA
100%
100%
Smiggle USA Inc.*
USA
100%
100%
Just UK International Limited*
UK
100%
100%
Smiggle UK Limited*
UK
100%
100%
Peter Alexander UK Limited*
UK
100%
100%
Smiggle Ireland Limited
Ireland
100%
100%
ETI Holdings Limited*
New Zealand
100%
100%
Roskill Hill Limited*
New Zealand
100%
100%
RSCA Pty Limited*
Australia
100%
100%
RSCB Pty Limited*
Australia
100%
100%
Just Group Singapore Private Ltd *
Singapore
100%
100%
Peter Alexander Singapore Private Ltd *
Singapore
100%
100%
Smiggle Stores Malaysia SDN BHD
Malaysia
100%
100%
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
83
Annual Report 2024
GROUP STRUCTURE
27 PARENT ENTITY INFORMATION
The accounting policies of Premier Investments Limited, being the parent entity, which have been applied in
determining the financial information shown below, are the same as those applied in the consolidated financial
statements.
2024
$’000
2023
$’000
(a) Summary financial information
Statement of financial position
Current assets
252,847
276,578
Total assets
1,647,154
1,632,906
Current liabilities
1,192
9,873
Total liabilities
97,440
101,287
Shareholders’ equity
Issued capital
608,615
608,615
Reserves:
- Foreign currency translation reserve
10,862
14,504
- Performance rights reserve
31,436
34,520
Retained earnings
898,801
873,981
Net profit for the period
221,064
218,074
Other comprehensive loss for the period, net of tax
3,642
4,949
(b)
Guarantees entered into by the parent entity
The parent entity has provided no financial guarantees in respect of bank overdrafts and loans of subsidiaries (2023:
$nil).
The parent entity has also given no unsecured guarantees in respect of leases of subsidiaries or bank
overdrafts of subsidiaries (2023: $nil).
(c) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 27 July 2024 (2023: $nil).
(d)
Contractual commitments for the acquisition of property, plant or equipment
The parent entity did not have any contractual commitments to purchase property, plant and equipment as at
27 July 2024 or 29 July 2023.
Premier Investments Limited 84
GROUP STRUCTURE
28 DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, dated 17 December 2016,
relief has been granted to certain wholly-owned subsidiaries in the Australian Group from the Corporations law
requirements for preparation, audit and lodgement of financial reports. As a condition of this instrument, Just
Group Limited, a subsidiary of Premier Investments Limited, and each of the controlled entities of Just Group
Limited entered into a Deed of Cross Guarantee as at 25 June 2009. Premier Investments Limited is not a party
to the Deed of Cross Guarantee.
29 RELATED PARTY TRANSACTIONS
(a)
PARENT ENTITY AND SUBSIDIARIES
The ultimate parent entity is Premier Investments Limited. Details of subsidiaries are provided in note 26.
CONSOLIDATED
2024
$
2023
$
(b) COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
4,928,201
5,038,290
Post-employment benefits
98,584
110,734
Share-based payments
932,390
4,553,671
TOTAL
5,959,175
9,702,695
(c)
RELATED PARTY TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
Mr. Lanzer is the managing partner of the legal firm Arnold Bloch Leibler. Group companies use the services of
Arnold Bloch Leibler from time to time. Legal services totalling $3,221,654 (2023: $1,695,213), including Mr.
Lanzer's Director fees, GST and disbursements were invoiced by Arnold Bloch Leibler to the Group, with $972,623
(2023: $234,282) remaining outstanding at year-end. The fees paid for these services were at arm's length and on
normal commercial terms. Mr. Lanzer is a director of Loch Awe Pty Ltd. During the year, lease payments totalling
$240,167 (2023: $240,167) including GST was paid to Loch Awe Pty Ltd, with $nil outstanding rent payments at
year-end (2023: $nil). The payments were at arm’s length and on normal commercial terms.
Mr. Lew is a director of Voyager Distributing Company Pty Ltd. During the year, purchases totalling $18,821,591
(2023: $25,652,581) including GST have been made by Group companies from Voyager Distributing Co. Pty Ltd,
with $3,101,224 (2023: $3,820,631) remaining outstanding at year-end. The purchases were all at arm’s length and
on normal commercial terms.
Mr. Lew is a director of Century Plaza Trading Pty. Ltd. The company and Century Plaza Trading Pty Ltd are parties
to a Services Agreement to which Century Plaza Trading agrees to provide certain administrative services to the
company to the extent required and requested by the company. The company is required to reimburse Century
Plaza Trading for costs it incurs in providing the company with the services under the Service Agreement. The
company reimbursed a total of $632,500 (2023: $434,500) costs including GST incurred by Century Plaza Trading
Pty Ltd, with $nil (2023: $nil) outstanding at year-end.
Ballook Pty Ltd is a company associated with Mr Lew. During the year, Just Group Limited entered into a property
lease for warehousing space in Footscray. The lease commencement date was 1 July 2024, with an expiry date of
31 October 2026. The annual rent agreed to is $1,155,000 inclusive of GST, and Just Group Limited is responsible
for all outgoings in relation to the area leased. The lease was entered into at arm’s length and on normal
commercial terms. The lease is accounted for under AASB 16 Leases in the financial statements.
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
85
Annual Report 2024
OTHER DISCLOSURES
CONSOLIDATED
2024
$
2023
$
30 AUDITOR’S REMUNERATION
The auditor of Premier Investments Limited is EY (Australia).
Amounts received, or due and receivable, by EY (Australia):
Audit or review of the statutory financial report of the parent
covering the group and auditing the statutory financial
reports of any controlled entities
726,000
648,628
Other assurance services or agreed-upon-procedures under
other legislation or contractual arrangements not required to
be performed by the auditor
423,323
43,000
Other non-audit services
-
12,669
SUB-TOTAL
1,149,323
704,297
Amounts received, or due and receivable, by overseas
member firms of EY (Australia) for:
Audit of the financial report of any controlled entities
213,000
210,000
Other non-audit services
1,650
-
TOTAL AUDITOR’S REMUNERATION
1,363,973
914,297
31 SHARE-BASED PAYMENT PLANS
(a)
RECOGNISED SHARE-BASED PAYMENT EXPENSE (BENEFIT)
CONSOLIDATED
2024
$’000
2023
$’000
TOTAL EXPENSE (BENEFIT) ARISING FROM EQUITY-
SETTLED SHARE-BASED PAYMENT TRANSACTIONS
(3,084)
7,207
(b)
TYPE OF SHARE-BASED PAYMENT PLANS
Performance rights
The Group grants performance rights to executives, thus ensuring that the executives who are most directly
able to influence the Group’s performance are appropriately aligned with the interests of shareholders.
A performance right is a right to acquire one fully paid ordinary share of the Group after meeting pre-determined
performance conditions. These performance conditions have been discussed in the Remuneration Report
section of the Directors’ Report.
The fair value of the performance rights has been calculated as at the respective grant dates using an
appropriate valuation technique. The valuation model applied, being either the Monte-Carlo simulation pricing
model or the Black-Scholes European pricing model, is dependent on the assumptions underlying the
performance rights granted to ensure these are appropriately factored into the determination of fair value.
In determining the share-based payments expense for the period, the number of instruments expected to vest
has been adjusted to reflect the number of executives expected to remain with the Group until the end of the
performance period.
Premier Investments Limited 86
OTHER DISCLOSURES
31 SHARE-BASED PAYMENT PLANS (CONTINUED)
(b)
TYPE OF SHARE-BASED PAYMENT PLANS (CONTINUED)
Performance rights (continued)
The following table shows the share-based payment arrangements in existence during the current and prior
reporting periods, as well as the factors considered in determining the fair values of the performance rights in
existence:
GRANT DATE
(DD/MM/YYYY)
NUMBER OF
RIGHTS
GRANTED
SHARE ISSUE
PRICE
OPTION LIFE
DIVIDEND
YIELD
VOLATILITY
RISK-FREE RATE
FAIR
VALUE
01/05/2020
544,809
$13.21
2.5 – 4 years
3.5%
36%
0.40%
$8.33
02/12/2021
600,000
$30.58
3 – 6 years
3.6%
24%
0.87%
$17.40
02/12/2021
200,000
$30.58
1 – 4 years
3.6%
24%
0.81%
$27.25
01/07/2022
67,265
$22.30
1 – 3 years
3.6%
30%
2.32%
$20.66
24/10/2022
165,000
$23.30
3 – 5 years
3.9%
25%
3.73%
$19.98
27/10/2022
455,340
$24.08
3 – 5 years
3.9%
25%
3.47%
$11.21
16/08/2023
25,000
$21.98
1 year
4.23%
25%
3.97%
$21.11
(c)
SUMMARY OF RIGHTS GRANTED UNDER PERFORMANCE RIGHTS PLANS
The following table illustrates the number (No.) and weighted average exercise prices (“WAEP”) of, and
movements in, performance rights issued during the year:
2024
No.
2024
WAEP
2023
No.
2023
WAEP
Balance at beginning of the year
1,776,965
-
1,412,074
-
Granted during the year
50,000
-
620,340
-
Exercised during the year (i)
(433,799)
-
(231,603)
-
Forfeited during the year
(831,386)
-
(23,846)
-
Balance at the end of the year
561,780
-
1,776,965
-
(i) The weighted average share price at the date of exercise of rights exercised during the year was $26.13 (2023: $24.42).
Since the end of the financial year and up to the date of this report, no performance rights have been exercised.
700,000 performance rights have lapsed due to performance conditions not being met.
(d)
WEIGHTED AVERAGE FAIR VALUE
The weighted average fair value of performance rights granted during the year was $25.96 (2023: $13.54).
SHARE-BASED PAYMENT ACCOUNTING POLICIES
The Group provides benefits to its employees in the form of share-based payments, whereby employees render
services in exchange for rights over shares (equity-settled transactions). The plan in place to provide these benefits
is a long-term incentive plan known as the performance rights plan (“PRP”). The cost of these equity-settled
transactions with employees is measured by reference to the fair value of the equity instrument at the date at which
they are granted.
The cost of equity-settled transactions is recognised in profit or loss, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled (the vesting period), ending
on the date on which the relevant employees become fully entitled to the award (the vesting date).
Notes to the Financial Statements continued
For the 52 weeks ended 27 July 2024 and 29 July 2023
87
Annual Report 2024
OTHER DISCLOSURES
31 SHARE-BASED PAYMENT PLANS (CONTINUED)
SHARE-BASED PAYMENT ACCOUNTING POLICIES (continued)
At each subsequent reporting date until vesting, the cumulative charge to profit or loss in the statement of
comprehensive income is the product of: the grant date fair value of the award, the extent to which the vesting
period has expired, and the current best estimate of the number of awards that will vest as at the grant date.
The charge to profit or loss for the period is the cumulative amount as calculated above less the amounts already
charged in previous periods. There is a corresponding entry to equity. No expense is recognised for awards that
do not ultimately vest, except for equity-settled transactions for which vesting is conditional upon a market or non-
vesting condition. These are treated as vested, irrespective of whether or not the market or non-vesting condition
is satisfied, provided that all other performance and service conditions are met.
KEY ACCOUNTING ESTIMATES AND ASSUMPTIONS
The fair value of share-based payment transactions is determined at the grant date using an appropriate
valuation model, which takes into account the terms and conditions upon which the instruments were granted
to key executives. The terms and conditions require estimates to be made of the number of equity instruments
expected to vest. These accounting estimates and assumptions would have no impact on the carrying
amounts of assets or liabilities within the next annual reporting period but may impact the share-based
payment expense and performance rights reserve within equity.
32 EVENTS AFTER THE REPORTING DATE
The Directors of Premier Investments Limited approved a final ordinary dividend in respect of the 2024 financial
year. The total amount of the final ordinary dividend is $111,761,000 (2023: Final ordinary dividend of
$95,675,000) which represents a fully franked dividend of 70 cents per share (2023: Final ordinary dividend of
60 cents per share). The dividend has not been provided for in the 2024 financial statements.
33 CONTINGENT LIABILITIES
The Group has bank guarantees and outstanding letters of credit totalling $3,667,481 (2023: $4,183,609).
Directors’ Declaration
Premier Investments Limited 88
In accordance with a resolution of the Directors of Premier Investments Limited, I state that:
In the opinion of the Directors:
(a)
the financial statements and notes of Premier Investments Limited for the financial year ended
27 July 2024 are in accordance with the Corporations Act 2001, including:
(i)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
(ii)
giving a true and fair view of the consolidated entity’s financial position as at 27 July 2024
and of its performance for the financial year ended on that date, and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
(c)
in the opinion of the directors, as at the date of this declaration, there are reasonable grounds to
believe that the members of the Closed Group will be able to meet any obligations or liabilities to
which they are or may become subject, by virtue of the Deed of Cross Guarantee.
(d)
The consolidated entity disclosure statement (Appendix 1) required by section 295A of the
Corporations Act 2001 is true and correct.
Note 2(b) confirms that the financial statements also comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
The Directors have been given the declaration by the Chief Financial Officer required by section 295A of the
Corporations Act 2001 for the financial year ended 27 July 2024.
On behalf of the Board
Solomon Lew
Chairman
24 September 2024
Consolidated Entity Disclosure Statement
89
Annual Report 2024
Appendix 1 – Consolidated Entity Disclosure Statement
Bodies Corporate
Tax Residency
Entity Name
Entity Type
Country
Incorporated
Share
Capital
Australian
or Foreign
Foreign
Jurisdiction
Premier Investments Ltd
Body Corp
Australia
n/a
Australian
n/a
Kimtara Investments Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Premfin Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Springdeep Investments Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Prempref Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Metalgrove Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Just Group Limited
Body Corp
Australia
100%
Australian
n/a
Just Jeans Group Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Just Jeans Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Jay Jays Trademark Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Just-Shop Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Peter Alexander Sleepwear Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Old Blues Pty Limited
Body Corp
Australia
100%
Australian
n/a
Kimbyr Investments Limited
Body Corp
New Zealand
100%
Foreign
New Zealand
Jacqui E Pty Limited
Body Corp
Australia
100%
Australian
n/a
Jacqueline-Eve Fashions Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Jacqueline-Eve (Hobart) Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Jacqueline-Eve (Retail) Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Jacqueline-Eve (Leases) Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Sydleigh Pty Limited
Body Corp
Australia
100%
Australian
n/a
Old Favourites Blues Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Urban Brands Retail Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Portmans Pty Limited
Body Corp
Australia
100%
Australian
n/a
Dotti Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Smiggle Pty Limited
Body Corp
Australia
100%
Australian
n/a
Just Group International Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Smiggle Group Holdings Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Smiggle International Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Peter Alexander Group Holdings Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Peter Alexander International Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Smiggle Singapore Pte Ltd
Body Corp
Singapore
100%
Foreign
Singapore
Just Group International HK Ltd
Body Corp
Hong Kong
100%
Australian
n/a
Smiggle HK Ltd
Body Corp
Hong Kong
100%
Foreign
Hong Kong
Just Group USA Inc.
Body Corp
USA
100%
Australian
n/a
Peter Alexander USA Inc.
Body Corp
USA
100%
Australian
n/a
Smiggle USA Inc.
Body Corp
USA
100%
Australian
n/a
Just UK International Ltd
Body Corp
UK
100%
Australian
n/a
Smiggle UK Limited
Body Corp
UK
100%
Foreign
UK
Peter Alexander UK Ltd
Body Corp
UK
100%
Australian
n/a
Smiggle Ireland Ltd
Body Corp
Ireland
100%
Foreign
Ireland
ETI Holdings Ltd
Body Corp
New Zealand
100%
Australian
n/a
Roskill Hill Limited
Body Corp
New Zealand
100%
Australian
n/a
RSCA Pty Ltd
Body Corp
Australia
100%
Australian
n/a
RSCB Pty Ltd
Body Corp
Australia
100%
Australian
n/a
Just Group Singapore Private Ltd
Body Corp
Singapore
100%
Australian
n/a
Peter Alexander Singapore Pvt Ltd
Body Corp
Singapore
100%
Australian
n/a
Smiggle Stores Malaysia SDN BHD
Body Corp
Malaysia
100%
Foreign
Malaysia
Basis of preparation
The consolidated entity disclosure statement has been prepared in accordance with subsection 295(3A)(a) of the
Corporations Act 2001. The entities listed in the statement are Premier Investments Limited and all the entities it
controls in accordance with AASB 10 Consolidated Financial Statements. The percentage of share capital
disclosed for bodies corporate included in the statement represents the economic interest consolidated in the
consolidated financial statements/voting interest controlled by Premier Investments Limited either directly or
indirectly.
Independent Auditor’s Report
Premier Investments Limited 90
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Ernst & Young
8 Exhibition Street
Melbourne VIC 3000 Australia
GPO Box 67 Melbourne VIC 3001
Tel: +61 3 9288 8000
Fax: +61 3 8650 7777
ey.com/au
Independent audit or’s report t o t he members of Premier Invest ment s
Limit ed
Report on the audit of the financial report
Opinion
We have audited the financial report of Premier Investments Limited (the Company) and its
subsidiaries (collectively the Group), which comprises the consolidated statement of financial position
as at 27 July 2024 , the consolidated statement of comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, notes to the
financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
a.
Giving a true and fair view of the consolidated financial position of the Group as at 27 July 2024
and of its consolidated financial performance for the year ended on that date; and
b.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial report of the current year. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit
addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the
financial report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the financial report. The results of our audit procedures, including the
procedures performed to address the matters below, provide the basis for our audit opinion on the
accompanying financial report.
Independent Auditor’s Report continued
91
Annual Report 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Carrying value of intangible assets
Why significant
How our audit addressed the key audit matter
At 27 July 2024, the Group held $818.3 million in
goodwill and indefinite-life brand names recognised
from historical business combinations, representing
32% of total assets.
As outlined in Note 18 of the financial report, the
goodwill and brand names are tested by the Group for
impairment annually. The recoverable amount of
these assets was determined based on a value in use
model referencing discounted cash flows of the retail
segment for goodwill, and the casual wear, women’s
wear and non-apparel cash generating units (CGUs)
for brand names. The model contains estimates and
significant judgements regarding future cash flow
projections which are critical to the assessment of
impairment, particularly forecast sales growth in the
casual wear and women’s wear CGUs and discount
rates applied.
Significant assumptions used in the impairment
testing referred to above are inherently subjective
and in times of economic uncertainty the degree of
subjectivity is higher than it might otherwise be.
Changes in certain assumptions can lead to significant
changes in the recoverable amount of these assets.
Accordingly, given the significant judgements and
estimates involved in assessing impairment of
intangible assets we considered this a key audit
matter. For the same reasons we consider it
important that attention is drawn to the information
in Note 18.
Our audit procedures included the following:
►
Assessed the application of the valuation
methodologies applied.
►
Evaluated whether the determination of CGUs was
in accordance with Australian Accounting
Standards.
►
Agreed the cashflows within the impairment model
to board approved cashflows.
►
Considered the historical accuracy of the Group’s
cash flow forecasting process.
►
Compared the forecast cash flows used in the
value in use model to the actual current year
financial performance of the underlying CGUs for
reasonability.
►
Assessed key inputs being discount rates, relief
from royalty rates and sales growth rates adopted
in the value in use model including comparison to
available market data for comparable businesses.
►
Performed sensitivity analysis on key inputs and
assumptions included in the forecast cashflows
and impairment models including the discount
rates, to assess the risk of the CGU carrying value
exceeding the recoverable amount.
►
Assessed the adequacy of the disclosures included
in the financial report.
Our valuation specialists were involved in the conduct
of these procedures where required.
Existence and valuation of inventory
Why significant
How our audit addressed the key audit matter
As at 27 July 2024, the Group held $217.9 million in
inventories.
Inventories are held at several distribution centres, as
well as at over 1,200 retail stores.
As detailed in Note 10 of the financial report,
inventories are valued at the lower of cost and net
realisable value.
The cost of finished goods includes a proportion of
purchasing department costs, as well as freight,
handling, and warehouse costs incurred to deliver the
goods to the point of sale.
Our audit procedures included the following:
►
Assessed the application of valuation
methodologies for compliance with Australian
Accounting Standards.
►
Selected a sample of inventory lines and
recalculated cost based on supporting supplier
invoices and assessed the allocation of costs
absorbed from the purchasing department, freight
and warehouse costs.
►
Attended store inventory counts on a sample basis
and assessed the stock counting process which
addressed inventory quantity and condition.
Premier Investments Limited 92
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Why significant
How our audit addressed the key audit matter
Provisions are recorded for matters such as aged and
slow-moving inventory to ensure inventory is
recorded at the lower of cost and net realisable value.
This requires a level of judgement with regard to
changing consumer demands and fashion trends.
Such judgements include the Group’s expectations for
future sales and inventory mark downs.
Accordingly, the existence and valuation of inventory
was considered to be a key audit matter.
►
For all distribution centres with a material
inventory balance, attended stocktakes at or near
27 July 2024, performed test counts, and
performed roll back or roll forward procedures to
balance date.
►
Assessed the basis for inventory provisions,
including the rationale for recording specific
provisions. In doing so we examined the ageing
profile of inventory, considered how the Group
identified specific slow-moving inventories,
assessed future selling prices, including
consideration of costs to sell, and historical loss
rates.
►
Tested the slow-moving inventory reports for
accuracy and completeness.
►
Considered the completeness of inventory
provisions by identifying mark down sales at or
subsequent to year end.
Accounting for leases
Why significant
How our audit addressed the key audit matter
The Group holds a significant volume of leases by
number and value over retail sites as a lessee.
The recognition and measurement of new and
remeasured lease agreements executed during the
year in accordance with AASB 16 Leases (“AASB 16”)
are dependent on a number of key judgements and
estimates. These include:
►
The calculation of incremental borrowing rates;
►
The treatment of the option to extend the lease
term under holdover; and
►
The impact of backdated rent variations.
Accordingly, given the significant judgements and
estimates involved we considered this a key audit
matter.
Our audit procedures included the following:
►
Assessed the mathematical accuracy of the
Group’s AASB 16 lease calculation model.
►
For a sample of leases, agreed the Group’s inputs
in the AASB 16 lease calculation model in relation
to those leases, such as, key dates, fixed and
variable rent payments, renewal options and
incentives, to the relevant terms of the underlying
signed lease agreements.
►
Assessed the accounting treatment applied to a
sample of new and renegotiated lease agreements
during the year, including the impact of backdated
rental savings on the lease balances recognised.
►
Considered the Group’s assumptions in relation to
the treatment of the option to extend and lease
term under holdover.
►
Assessed the incremental borrowing rates used to
discount future lease payments to present value.
►
Assessed the adequacy of the disclosures included
in the financial report.
We assessed the Group’s calculations of the financial
impact of the accounting standard and the accounting
policies, estimates and judgements made in respect of
the Group’s right of use assets and lease liabilities, as
well as related depreciation and interest expense
recognised through the Consolidated Statement of
Comprehensive Income.
Independent Auditor’s Report continued
93
Annual Report 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Company’s 2024 annual report other than the financial report and our
auditor’s report thereon. We obtained the directors’ report that is to be included in the annual report,
prior to the date of this auditor’s report, and we expect to obtain the remaining sections of the annual
report after the date of this auditor’s report.
Our opinion on the financial report does not cover the other information and we do not and will not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report
and our related assurance opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
►
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001; and
►
The consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001; and
for such internal control as the directors determine is necessary to enable the preparation of:
►
The financial report (other than the consolidated entity disclosure statement) that gives a true
and fair view and is free from material misstatement, whether due to fraud or error; and
►
The consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters relating to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Premier Investments Limited 94
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
►
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
►
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
►
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
►
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
►
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
►
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
Independent Auditor’s Report continued
95
Annual Report 2024
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 15 to 33 of the directors’ report for the
year ended 27 July 2024.
In our opinion, the Remuneration Report of Premier Investments Limited for the year ended
27 July 2024, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
Ernst & Young
Glenn Carmody
Partner
Melbourne, Australia
24 September 2024
ASX Additional Shareholder Information
As at 20 September 2024
Premier Investments Limited 96
TWENTY LARGEST SHAREHOLDERS
NAME
TOTAL
% IC
RANK
CENTURY PLAZA INVESTMENTS PTY LTD
51,569,400
32.30%
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
29,513,717
18.49%
2
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
24,978,912
15.65%
3
CITICORP NOMINEES PTY LIMITED
13,117,971
8.22%
4
METREPARK PTY LTD
8,235,331
5.16%
5
SL SUPERANNUATION NO 1 PTY LTD
4,437,699
2.78%
6
LINFOX SHARE INVESTMENT PTY LTD
2,577,014
1.61%
7
BNP PARIBAS NOMINEES PTY LTD
2,061,972
1.29%
8
BNP PARIBAS NOMS PTY LTD
1,390,814
0.87%
9
ARGO INVESTMENTS LIMITED
1,250,000
0.78%
10
NATIONAL NOMINEES LIMITED
1,234,589
0.77%
11
UBS NOMINEES PTY LTD
970,783
0.61%
12
MR CON ZEMPILAS
470,000
0.29%
13
GEOMAR SUPERANNUATION PTY LTD
450,000
0.28%
14
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
303,818
0.19%
15
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
289,364
0.18%
16
CITICORP NOMINEES PTY LIMITED
282,851
0.18%
17
BNP PARIBAS NOMINEES PTY LTD
273,000
0.17%
18
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C 2
238,077
0.15%
19
JOHN CHESTON
217,839
0.14%
20
TOTAL FOR TOP 20:
143,863,151
90.11%
SUBSTANTIAL SHAREHOLDERS
NAME
TOTAL UNITS
% IC
CENTURY PLAZA INVESTMENTS PTY LTD AND ASSOCIATES
58,552,420
42.43%
PERPETUAL LIMITED AND ITS SUBSIDIARIES
14,512,311
9.09%
DISTRIBUTION OF EQUITY SHAREHOLDERS
1
TO
1,000
1,001
TO
5,000
5,001
TO
10,000
10,001
TO
100,000
100,001
TO
(MAX)
TOTAL
Holders
7,633
2,332
279
179
33
10,456
Ordinary Fully Paid Shares
2,505,618
5,176,122
2,031,241
4,208,403
145,737,054
159,658,438
The number of investors holding less than a marketable parcel of 15 securities ($34.29 on 20 September 2024)
is 233 and they hold 658 securities.
VOTING RIGHTS
All ordinary shares carry one vote per share without restriction.
Corporate Directory
97
Annual Report 2024
A.C.N. 006 727 966
DIRECTORS
Mr. Solomon Lew (Chairman)
Dr. David M. Crean (Deputy Chairman)
Mr. Timothy Antonie (Lead Independent Director)
Ms. Sylvia Falzon
Ms. Sally Herman
Mr. Henry D. Lanzer AM
Mr. Terrence L. McCartney
Mr. Michael R.I. McLeod
Ms. Andrea Weiss (appointed 4 December 2023)
COMPANY SECRETARY
Ms. Marinda Meyer
REGISTERED OFFICE
Level 7
417 St Kilda Road
Melbourne Victoria 3004
Telephone (03) 9650 6500
WEBSITE
AUDITOR
Ernst & Young
8 Exhibition Street
Melbourne Victoria 3000
SHARE REGISTER AND SHAREHOLDER
ENQUIRIES
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford Victoria 3067
Telephone (03) 9415 5000
LAWYERS
Arnold Bloch Leibler
Level 21
333 Collins Street
Melbourne Victoria 3000
Telephone (03) 9229 9999
www.premierinvestments.com.au
EMAIL
info@premierinvestments.com.au
LAWYERS
Arnold Bloch Leibler
Level 21
333 Collins Street
Melbourne Victoria 3000
Telephone (03) 9229 9999
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